Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: GVTucker who wrote (85027)	7/7/1999 7:54:00 PM
From: Harry Landsiedel	Respond to of 186894

GV Tucker. Re: "I think that Wall St. follows sentiment rather than creates it." I think WS sentiment and investor sentiment feed on each other. That's true when a stock is rising AND falling. It's the herd instinct. Re: "the valuation will only change slowly, as long as Intel can demonstrate that it can weather a recession better. This was happening throughout the 90's, as Intel's valuation grew steadily from a multiple around 12 to the current multiple around 30." I think another factor in the stock's rise and fall depends on the state of the competition and the PERCEIVED opinion about how much Intel can control pricing. When the PowerPC chip came out, this threat depressed the price. When National bought Cyrix, this held down the price/PE. Now that we're down to one very weak competitor, and Intel has again emerged triumphant the price/PE is expanding. Of course, in the LONG RUN, as Mr. Engel posted, "the stock price will follow earnings." And patience will be rewarded. HL