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

To: GVTucker who wrote (95627)	1/11/2000 8:54:00 AM
From: puborectalis	Read Replies (1) \| Respond to of 186894

Tuesday January 11, 8:29 am Eastern Time RESEARCH ALERT - CSFB upgrades Intel to strong buy NEW YORK, Jan 11 (Reuters) - Intel Corp. (NasdaqNM:INTC - news) is poised to benefit from a major computer upgrade in 2000 and an expected surge in sales could lead shares of the world's largest chip maker to double in the next 12 months, Credit Suisse First Boston said in a research note on Tuesday. -- In a research note, analyst Charlie Glavin upgraded his share recommendation on Intel to strong buy from buy ahead of the company's scheduled fourth quarter earnings report on Thursday. -- Shares of Intel jumped 2-3/4 to 88-1/2 in pre-open trading Tuesday from Monday's closing price of 85-3/4 on the Nasdaq stock market. -- ''2000 looms as the beginning of a major upgrade cycle for Intel,'' Glavin wrote, referring to the expected introduction of Microsoft Corp.'s (NasdaqNM:MSFT - news) Windows 2000 software system in February, which is expected to fuel a wave of new PC sales. -- He noted that during the last two major Microsoft upgrades to Windows 3.1 and Windows 95 in the early and mid-1990s, Intel stock increased 130 percent to 150 percent over a 12 month timeframe. -- ''Intel should report 4Q99 (fourth quarter) in-line with consensus,'' Glavin wrote. ''While Intel still has some execution risks, we believe that the 2000 guidance ... will draw investors back in the stock,'' he said. -- The First Call/Thomson Financial consensus estimate for the fourth quarter of 1999 is for Intel to report earnings of 63 cents, up slightly from the 60 reported in the fourth quarter of 1998. Year 2000 earnings are predicted to accelerate to $2.67 per share from an estimated $2.26 per share for full year 1999. -- ''An ugly 1999 is over,'' Glavin declared. -- He said Intel's ''barbell strategy'' should kick in during 2000, with the growth in low-cost, sub-$1000 PCs during 1999 fueling a two- to three-year surge in the number of more costly server computers used to manage these lower cost machines. -- The analyst said other catalysts in the coming year include the takeoff in production of advanced chips using Intel's latest 0.18-micron manufacturing process and the introduction and volume shipment of its 600 megahertz chip for mobile computers on January 18. -- He also pointed to the expected introduction of Intel's next-generation 64-bit processor code-named Itanium in the third quarter.

To: GVTucker who wrote (95627)	1/11/2000 9:00:00 AM
From: Joseph Pareti	Read Replies (1) \| Respond to of 186894

>Can anyone verify that 2nd paragraph? i find it difficult too. why would Intel want to bin down better chips ?

To: GVTucker who wrote (95627)	1/11/2000 9:28:00 AM
From: Process Boy	Read Replies (2) \| Respond to of 186894

GVT - <Can anyone verify that 2nd paragraph? To me, it seems to be a mistake, because in the long run it meant that another door was opened to AMD.> I have no window on this aspect of the business. I can neither confirm or deny any distribution / allocation issues, even if I wanted to (which I don't). I will say that if this was true, overall capacity certainly plays a functional role in this type of situation. Intel warned at the beginning of the Q that supplies were strained across the product line. It would be nice to just snap fingers and have some extra available capacity when a customer needs a certain amount of certain parts. Unfortunately, it's not nearly that easy, possibly bringing about situations as with GTW. Again, I don't know anything about the GTW allocation problems, other than what I read in the press. You bring up a valid point about the GTW thing. However, so does the CSFB analyst w.r.t. to product positioning, and also what products does one choose to sell when one is capacity constrained. I don't have the easy answer. PB