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

To: Joseph Pareti who wrote (93859)	12/12/1999 10:35:00 AM
From: Tony Viola	Read Replies (1) \| Respond to of 186894

Joe, some comments on the (nice) Barron's article: Barron's: If the rollout of broadband access to the American home comes slower than expected, demand for Intel-powered servers and networking devices may not prove strong enough to make up for the slowdown in the company's revenue growth from the PC market. DSL installations are projected to grow from tens of thousands now to millions by 2003. The phone companies just got mandated to share their copper lines to homes with DSL providers. This is already bringing DSL prices down. Also, companies are opting for DSL because of its lower cost. I think the bandwidth problem is on its way to being solved, although it is seeming to take forever. S&P : While we don't believe Intel will dominate these[ new sectors] to the extent it does the microprocessor market, we do believe Intel will prove a meaningful competitor and that even 10% share of these fast-growing markets should prove profitable. My comment - never wondered how Palm (10% of 3com revenues) has been able to boost a crap stock from the low twenties to the mid-forties ? - End of my comment - The new markets are still considerably less than 10% of Intel's revenues. Also, It'll take a while for the new business to be associated with Intel. It took the hand-held, wireless craze to wake up the world re 3COM and Palm. Barron's: What if, for example, the competition for server chips from the likes of Sun, HewlettPackard and IBM proves fiercer than expected? Of course, the HP chips will be Intel. Sun doesn't push any envelopes in chip performance, still at 450 MHz or so max. IBM? OK, they push (but do they ever sell?). Tony

To: Joseph Pareti who wrote (93859)	12/12/1999 12:45:00 PM
From: American Spirit	Read Replies (2) \| Respond to of 186894

WORLDWIDE CHIP SHORTAGE in 2000 - European Wall Street Journal last week had a big article about how chips will have to be rationaed next year due to a grave shortage. How this affects INTEL is unclear but it certainly cannot hurt their pricing ability. DD shortage is also reported on the horizon benefitting beaten-down DD stocks. I own HDD, MXTR and WDC which at at or near 52-week bottoms and have not participated in the tech rally at all. On the contrary. All said, it's not hard to see why beaten-down chip and DD stocks are values now for position traders. Sometime soon when these shortages become more publicly known these stocks could appreciate mightily. At 34 PE I don't see the risk in INTC here. And they will get the positive publicity once 2000 rolls around and they bring out their new faster chips.