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 : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: KeepItSimple who wrote (73490)	8/13/1999 4:42:00 AM
From: Olu Emuleomo	Respond to of 164684

KIS, Could this be the source of your troubles? --Olu E. (from trading-ideas.com) ------------------------------------------------------------------- PaineWebber raised 12-month price target for Intel from $80 to $95 based on the fact that PC demand is expected to remain strong during the second half. Seasonally, more units are shipped during the second half due to holiday shopping and increased promotional activities. While most analysts expect Intel to earn 54-55 cents per share in earnings, PaineWebber expects Intel to generate EPS of 58 cents. They believe that unit shipments would be up sequentially due to the induction of new Pentium III chips, higher demand for overseas (now that many of the emerging economies are rebounding) and various rebates being offered by companies such as Microsoft, AOL and others. Earnings would be boosted, as Intel's ASPs are expected to be higher in Q3 than Q2. For example, Intel introduced 600 MHz Pentium III, which are priced around $699, much higher than its blended ASP of $220 last quarter. The price for its 500 MHz Celeron is at $167, above Celeron ASP of $75 last quarter. While Intel might not get those prices for i ts new chips due to large volume discounts, overall, ASPs are expected to be higher, which is expected to improve margin and EPS. There are reports that Intel is seeing strong demand for its Pentium and Celeron chips, as spot prices for its chipset is up 28% above list. Pentium III chips continued to gain momentum over P-II, most of the interest appears to be concentrated on P-III 450 processor. However, demand for Pentium III 500 and 550 is increasing. Intel introduced 600 MHz Pentium III processor last week, manufactured on .25-micron process. Challenge is for the company to migrate to 0.18-minron by late September. International Data Corp said that unit shipments rose 27% during the second quarter and are expected to rise 2% sequentially, which suggests that overall unit shipments are going to be strong in Q3. After the introduction of new chips, several PC makers said that they would incorporate the new chips in their new systems. PaineWebber believes that Intel could earn as much as $3.25 in 2001and based on that, shares could trade at a price multiple of 29, which provides a price target of $95 in 12 months.