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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (82783)	12/13/1999 2:04:00 PM
From: tejek	Read Replies (1) \| Respond to of 1571808

Interesting comments re Prudential downgrade of intc. According to Pru, intc may miss consensus by more than $.01, the figure posted earlier today. Other important comments concerned inventory buildup of such items as chipsets and the drying up of retail and corporate pc sales.......is that because we are coming to the end of Q4 or pc sales generally have not been as strong as predicted? ____________________________________________________________ RESEARCH ALERT-Prudential cuts Intel to accumulate NEW YORK, Dec 13 (Reuters) - Prudential Securities analyst Hans Mosesmann said Monday he is downgrading Intel Corp. <INTC.O> to accumulate from strong buy, because of near-term concerns over Intel's fourth-quarter processor shipments. Shares of Intel were up 1 trading at 73-3/4 on the Nasdaq stock market. Mosesmann said inventory accumulation of non-processor products, such as core logic chipsets in the Far East, combined with "rather stable" Intel sport processor pricing is highly unusual and suggests unit shipment problems. Said that given the current late stages in this quarter where both consumer and corporate demand is "drying up," he believes Intel will likely meet or even slightly miss Prudential's current estimates of 62 cents per share for the quarter. Wall Street consensus estimates Intel to post earnings of 63 cents per share for the fourth quarter, according to First Call/Thomson Financial, which tracks earnings data. Mosesmann said during visit to Far East discovered unusual increases in Intel non-processor inventories such as core logic chipsets. Said Intel processor spot market prices have been very stable throughout the quarter and, in many instances, above the company's list prices, and said he believes Intel is not necessarily having a product mix problem that would adversely impact average selling prices. Said cutting Intel price target to $84 from $90 per share. Said if Intel's processor shipments improve for the remainder of the fourth quarter, it may be too late given that the consumer market "window" may have been missed and the corporate market is "very much already in Y2K shutdown." Said Prudential is maintaining fourth-quarter revenue and earnings per share estimates of $8.0 billion and 62 cents per share, respectively. Said Prudential's fourth-quarter processor unit estimate remains unchanged at 29.3 million and the fourth-quarter average selling price (ASP) remains at $199. 12:50 12-13-99 Copyright 1999 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. All active hyperlinks have been inserted by AOL.