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

To: SisterMaryElephant who wrote (89395)	10/3/1999 11:45:00 PM
From: kash johal	Respond to of 186894

Steve, Re:"article" I thought it was an interesting article. And the author made some excellent points regarding risks to Intel over the next few years. Having said that I thought there were some major problems in his thesis: 1) Stock price: Intels stock price needs to be viewed in balance with other tech leaders. Looked at historically it is clearly overvalued. If you look at it in relation to other high-techs it can be argued to be at least fairly valued if not under valued. 2) His analysis of the risks was excellent IMHO. He did not balance it with the fact that all business have high risks particularly hi-techs. This is a high risk high reward game as we all know. And one can certainly argue that its business has less risk than 12-15 months ago: Cyrix, rise, winchip are dead - hence reduced competition. Intels flash which was a financial drag is soaring. Diversification into telecom is certainly an interesting play. Long term growth of server market where merced will play is assured due to hyper growth of internet- now it is up to execution. overall i felt he made some good points and also had some faulty analysis. Perhaps his most fundamental mistake is to assume any logical relationship between P/E's and stock prices. regards, Kash