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Technology Stocks : Intel Strategy for Achieving Wealth and Off Topic -- Ignore unavailable to you. Want to Upgrade?

To: Sonny McWilliams who wrote (23981)	6/30/1999 7:28:00 PM
From: Tony Viola	Read Replies (1) \| Respond to of 27012

Sonny, OK, what's one thing that's wrong with having Intel as a core holding? Maybe we can find many reasons since it's fallen off its highs. However, I still think it's one of the best tech companies on the planet. Problem is, that every analyst thinks he or she can upgrade or downgrade them whenever they please because they think they understand and can analyze Intel's business. Practically everyone in this country knows what a microprocessor and a PC are. All they need to do is learn Intel's product line, know that the vast majority of their revenues comes from micros, find out ASPs, and they've got a handle, they think, on Intel's revenues. From there, they somehow come up with profits. Now, take Cisco, or EMC, or SUNW. Most analysts have no clue what LANs, WANs, SANs, NASs, Gigabit Routers, enterprise storage or Solaris servers are. So, they leave those companies, and most other tech companies, alone, because they don't understand them and don't want to look foolish. So, if Intel is so easy to analyze, why don't the analysts conclude to the upside as often as to the downside? Intel does do a lot of things right, after all. They do, but one downgrade, especially by a Niles or Edelstone, is worth a lot of upgrades. So, the more people analyzing, the more chance someone sees Intel negatively. Just keep an eye on whatever flak comes out about Intel in the next while, and see if you think something similar could have come out about Cisco, EMC or Sun, in a similar situation. A lot of this theory of mine also goes for Dell, BTW. PCs are easy to understand and analyze. Tony