Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 41.41

+2.2%

Dec 5 9:30 AM EST

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To: GVTucker who wrote (77297)	3/26/1999 10:09:00 AM
From: Paul Fiondella	Read Replies (1) of 186894

Let me quote Soros on exactly what I mean "a financial hypotheses does not have to be true to be profitable; it is enough that it should come to be generally accepted. But a false hypotheses cannot prevail forever. That is why I liked to invest in flawed hypotheses that had a chance of becoming generally accepted, provided I knew what the flaw was" The flawed hypothesis is that AMD will succeed in driving the price of all MPU's down and succeed in making money in such an environment. Proponents point to the obvious --- PC's under $1000 have taken over the end user market and AMD has increased its market share. The flaw is that AMD can make money at these prices when it has shown us quarter after quarter that it cannot. Intl can make money at these prices while continuing to make more money in markets it still controls (PC's above $1500). Intel has shown it can make cuts in production costs, and come up with new products and make less money but still make money at these prices. Intel is going to show us that it can do just that when it reports its first quarter. The end game scenario: Eventually and especially with the K7, AMD will have to change its strategy. It has succeeded in gaining market share and now it needs profits. Intel will have to conceed some segment of market to AMD and AMD will have to sell its products at a price where it can make money. In other words this intense price competition will end. IT will end in the workstation market where neither party will want to beggar thy neighbor and where the consumer is relatively unaffected. When and if prices rise relatively, as with the new generation of processors under development, Intel will make MORE money relatively than anyone embracing the flawed hypthesis currrently imagines. Thus I'm investing in INTC. ================== Please send your subscription check to ......

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