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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Brian Malloy who wrote (83121)	6/9/1999 8:07:00 AM
From: Process Boy	Respond to of 186894

Brian M. - <This [Jubak] was last weeks take.> You're right. Here is Jubak's latest take on INTC moneycentral.msn.com ====================================================================== ..... Why it made the '50 Best' list First, I've really found it helpful to review why these stocks are on this list. Memory gets fuzzy and if you're not careful, you can wind up focusing on the wrong qualities of a stock and worrying about the wrong problems. Take Intel (INTC), for example. Exactly why is it on the "50 Best" list? Well, I'm certainly not indifferent to the company's incredible 80%-plus market share for the chips that run personal computers, and I do believe that it would take Intel quite a while to lose control of that market. But market share alone isn't the competitive advantage that puts Intel on this list. It's on the list because the company has, by intelligently using the profits that resulted from that amazing market share, become one of the world's great manufacturers. Intel's factories are so much more efficient than anyone else's that the company can keep competitors starved for earnings, and the higher profits Intel generates from its factories get plowed back into newer plants with even more-efficient technology. National Semiconductor (NSM) recently pulled out of this market because it wasn't generating enough of a return from its current chip-making business to finance the investment it needed in the next generation of chip-making equipment to keep up with Intel. Advanced Micro Devices' (AMD) soon-to-be released chips may be as fast or faster than Intel's, but the company can't manufacture them efficiently enough to make them a serious threat to its big competitor. (For more on why I like Intel right now, see my June 4 column "Extra! Extra! Looking past the gloom and doom.") ... ====================================================================== PB