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

To: Thomas J. Smith who wrote (85545)	7/13/1999 7:34:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

TJ - Re: "WATCH and see when the real traders show up tomorrow,, " But aren't you a real trader ? Will you show up tomorrow? Are you going to drive Intel down to $44/share? Paul

To: Thomas J. Smith who wrote (85545)	7/13/1999 7:49:00 PM
From: Grandpa Joe	Read Replies (2) \| Respond to of 186894

Hi Guys: The CC was upbeat but INTC directed analysts to cut their Q3 earnings estimate from $0.58 to $0.52 according to Briefing.com: Intel (INTC) 65 3/8 -1/16: It is shaping up to be a weak year for Intel. The company reported Q2 EPS of $0.51, missing the First Call estimate by two cents. The revenue number was the problem for Intel this quarter. At the beginning of the quarter, the company expected revenues to be "flat to slightly down" from Q1; in fact, they fell a more-than-slight 5.0%. The earnings miss would have been much worse had it not been for the fact that gross margins held at 59% instead of falling, as had been expected. Cost improvements and manufacturing efficiencies offset the lower average selling prices that were the result of a shift to Celeron processors. The future looks much like the recent past for Intel. Q3 revenues are expected to rise only slightly from Q2, which is not that impressive given a seasonal tendency for revenues to rise better than 7% in Q3. Cost cutting will help keep margins high, however, which will in turn help to support earnings. But based on today's guidance, higher margins will probably not be enough to prevent Q3 earnings from missing current analyst estimates. The First Call estimate for Q3 was $0.58 prior to today's release, but Intel's guidance points to a number closer to $0.52. The problems for Intel are clear -- the market is moving rapidly to its lower price Celeron processor. The demand for ever higher processor speeds is not there, and the growth segment of the market is shifting to the low end. We have been arguing for more than a year that processor speed is the old paradigm and that Intel will struggle to remain a growth company in that environment. Today's earnings report gives us more confidence that this view is correct. INTC shares initially dropped 2 points in after hours trading, but subsequently rebounded to near unchanged. - GJ

To: Thomas J. Smith who wrote (85545)	7/13/1999 7:51:00 PM
From: Barry Grossman	Read Replies (1) \| Respond to of 186894

The real money movers were on a Long Island Railroad train when this INTC news broke Any traders who were long or short and therefore had a real vested interest, particularly those with significant positions, were undoubtedly watching the news when it broke - and likely not on the LIR at that time. The non-traders, who simply hold their long-term positions, were more than likely the riders on the train. After all, one quarter is just noise to them. Barry