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

To: Joseph Pareti who wrote (86260)	7/28/1999 10:37:00 AM
From: Joseph Pareti	Read Replies (1) \| Respond to of 186894

intel.com "Within five years, all companies will be Internet companies," says Intel Dr. Andy Grove, "or they won't be companies." - Intel is an Internet company. - C$CO is an Internet company. AMZN, YHOO, EBAY are "fireflies before the storm that are stirred up and throwing up sparks. [In the end] maybe one or two of them will be profitable."

To: Joseph Pareti who wrote (86260)	7/28/1999 10:52:00 AM
From: Robert Douglas	Respond to of 186894

If (and I strongly believe in it) everything will be sold over the internet, C$CO will own the infrastructure, and AMZN will be another '"so what" that uses the infrastructure like all other guys. What you should have said is that CSCO sells equipment to those who build or own the infrastructure. In this respect, CISCO is more like Applied Materials or even Caterpillar. It's the rate of growth of the infrastructure that drives a capital-equipment producer's sales. Once this rate of growth slows then they become subject more to the replacement cycle. Typically capital goods producers command low P/E multiples because of this. As much as I admire what CSCO has done, I have to conclude that the multiple is too high.

To: Joseph Pareti who wrote (86260)	7/28/1999 11:31:00 AM
From: GVTucker	Respond to of 186894

Joseph, please note that the phrase that you are attributing to me was a quote from somebody else that I was responding to.

To: Joseph Pareti who wrote (86260)	7/28/1999 2:06:00 PM
From: Barry Grossman	Read Replies (1) \| Respond to of 186894

Talking about the current technological revolution and the effects on the present and future economy, Alan G said that "there has never been a period like this in United States history." He also said, "Rather than slowing, it is even possible that the rate of technological change and it's effect on productivity could continue to increase and that the present circumstances [the goldilocks economy] could continue for a long while." So, who's to say that those PE's aren't correctly valuing those companies? One thing I know though is that Intel's relatively low PE is certainly a bargain that is being recognized by more investors even as I write this. INTC 70 1/4 31.7 million shares 33,800 trades @ 11:00 am PST. Barry

To: Joseph Pareti who wrote (86260)	7/28/1999 6:14:00 PM
From: Fred Fahmy	Read Replies (1) \| Respond to of 186894

Joe, < >I just don't see how CSCO can >justify a P/E around 100, can Yhoo justify a P/e=1000 ? what is the p/e of AMZN ? or ebay? > This was my comment regarding CSCO's P/E. In answer to your question, AMZN is possibly the best example of excess in the history of the markets. Of course it's P/E is absurd. Many of the other internet stocks aren't far behind. IMO, that doesn't justify CSCO's P/E...it just means that they are that much more overvalued. I tend to value companies largely relative to their own fundamentals....and while CSCO has excellent fundamentals and great prospects, I think it is fundamentally overvalued by most standards and by some significantly overvalued. This is JMO. <If (and I strongly believe in it) everything will be sold over the internet, C$CO will own the infrastructure, and AMZN will be another '"so what" that uses the infrastructure like all other guys.> I agree with the bolded part of your statement with tremendous conviction and I think few people realize how significant this will be. I also agree that AMZN is nothing special. I also agree that CSCO will own a significant piece of the infrastructure (althouhg not without competition). But a P/E of 100?? Too rich for me. If CSCO can achieve and sustain a growth rate of 60-80%, then I'll buy a P/E of 100. BTW, as with any long term core holding I have, I wouldn't dump it just because I think it has gotten ahead of itself fundamentally (unless of course I think the future is problematic). But I sure wouldn't jump in and buy more at these levels either. Good luck, FF