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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: PaperChase who wrote (64687)	7/16/1999 10:43:00 AM
From: Earlie	Respond to of 132070

PC: I agree with your assessment of Seagate. Its problems continue unabated. They of course relate directly to the fact that it supplies an industry (PCs) that is moving from strong growth to modest or negligible growth. Intel supplies that same industry. Let me summarize my perspective on Intel. The stock price has been heading into orbit over the last several quarters even as the revenue growth has fallen, the profits have stagnated then fallen, the inventories have climbed and a small competitor has come from no where to grab 50% of Intel's market share in the U.S. The company also has legal worries with respect to some of the technology it depends on. The stock price is held aloft by a grotesque stock buyback program that is unsustainable. The stock is also held in far too great a volume by far too many funds. They will all decide to sell at the same time and there will be few buyers. The industry that it supplies has seen devastating price wars that have gutted operating profits, which guarantees price pressures for Intel. In the past, Intel deserved its growth multiple and its "darling" status. Not so today. Best, Earlie