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

To: Goutam who wrote (86538)	1/11/2000 12:31:00 PM
From: Charles R	Read Replies (1) \| Respond to of 1572627

Goutama, <I bought 200 INTC Jan 85 puts @ 1 5/16 this morning when INTC was at $92, and before I saw this upgrade :{ I based my decision to buy INTC puts based on steep price cuts of Athlon I noticed on Pricewatch. There is a possibility that I might eek out a small profit before todays market close ;-) > Seems like a high risk play in this environment. Good luck. Chuck

To: Goutam who wrote (86538)	1/11/2000 12:53:00 PM
From: tejek	Respond to of 1572627

Goutama and thread: THE TRUTH IS OUT THERE SOMEWHERE BUT DEFINITELY NOT WITH THE INTEL ANALYSTS ____________________________________________________________ Intel Seen Reporting Higher 4th-Qtr Net; Shares Rise Santa Clara, California, Jan. 11 (Bloomberg) -- Intel Corp., the world's No. 1 computer-chip maker, will report higher fourth- quarter earnings Thursday as sales of personal computers running on its microprocessors rose during the holidays, analysts said. Intel shares climbed 5 7/8 to 91 5/8 at midday, after touching a record 92 3/8. The stock has gained 16 percent since Thursday and has risen 31 percent in the past 12 months. Analyst Charles Glavin at Credit Suisse First Boston Inc. forecast today that the shares will reach 150 in 12 months and raised his rating to a ``strong buy' from a ``buy.' ``I wouldn't bet against Intel in the fourth quarter,' said Christian Koch, senior technology analyst at Trusco Capital Management in Atlanta, which owns 5 million Intel shares. Intel's net income climbed to 63 cents a share from a split- adjusted 59 cents a year earlier, according to analysts polled by First Call/Thomson Financial. The estimates range from 60 cents to 67 cents. Analysts said sales rose about 5 percent to $8 billion from $7.61 billion. THIS IS LAME...LAST QUARTER INTEL WAS UP 8.9% BOTH YOY AND SEQUENTIALLY....WHICH SUCKED. AND NOW THEY ARE SAYING THAT A 5% INCREASE YOY AND SEQUENTIALLY IS GREAT AND THE STOCK SHOULD MOVE UP TO $150....SOMEONE IS SMOKING SOME BAD WEED!! Optimists predict that Intel will give a rosy forecast for the first quarter as well, as it gets a boost from delayed Year 2000 buying in a period when sales generally slow. Intel has disappointed investors the last three quarters, missing forecasts for profit margin in the third quarter, earnings in the second quarter and sales in the first quarter. Strong Demand Koch and others say Intel has all the makings of a strong fourth quarter. Gateway Inc., the No. 2 direct-seller of PCs, said last week it couldn't get all the Intel chips it needed. Some analysts suspect that Santa Clara, California-based Intel's plants are running at 85 percent or 90 percent of their capacity, which lowers the cost of producing each chip. I STILL DON'T BELIEVE THIS IS TRUE! ``They coin dough' at those capacity levels, said Jack Geraghty, a technology analyst at Gerard Klauer Mattison & Co. in New York, who rates Intel shares a ``buy.' Geraghty said demand for Intel chips will carry over into the first quarter because companies put off some PC purchases amid concern about the Year 2000 computer bug. With that scare behind them, the companies will start buying, he said. That may mean that first-quarter sales will be unchanged from the fourth quarter's, a time when sales usually fall, Geraghty said. Last year, Intel's sales fell 7 percent in the first quarter from the fourth. In 1998, they fell 8 percent. Advanced Micro Rivalry Others say Intel could run into trouble in the first quarter if it feels pressured to cut prices by large amounts to take sales from rival Advanced Micro Devices Inc. Advanced Micro has been successfully producing its new Athlon processor, a competitor to Intel's Pentium, and the two are locked in a battle over which company can offer the fastest chip. Gateway yesterday started selling PCs using Athlon, less than a week after it warned that fourth-quarter sales and earnings would fall short of expectations because it couldn't get enough Intel chips. Compaq Computer Corp. and International Business Machines Corp. already use Athlons in some PCs. Gateway executives said they were upset with Intel for not supplying them with more chips in the fourth quarter. Tad LaFountain, an analyst at Needham & Co., said he expects Intel to try to repair its relationship with Gateway and others by giving the company better prices on chips. That could hurt Intel's profits in the first quarter, he said. ``The first quarter is going to be more problematic,' said LaFountain, who rates Intel a ``hold' and Advanced Micro a ``strong buy.' GO TAD!!! Jan/11/2000 12:27 For more stories from Bloomberg News, click here. (C) Copyright 2000 Bloomberg L.P. Any redistribution of Bloomberg content, including by framing or similar means, is expressly prohibited without the prior written consent of Bloomberg L.P. Any reference to the material must be properly attributed to Bloomberg News. The information herein was obtained from sources which Bloomberg L.P. and its suppliers believe reliable, but they do not guarantee its accuracy. Neither the information, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any securities or commodities.(C) Copyright 2000 Bloomberg L.P. BLOOMBERG, Bloomberg News, Bloomberg Financial Markets, Bloomberg Television, Bloomberg News Radio are trademarks, tradenames and service marks of Bloomberg L.P.