To: Mary Cluney who wrote (96339 ) 1/15/2000 11:21:00 AM From: Felix Appolonia Respond to of 186894
Michael,>>> I am noting that there is no way Intel shareholders who buy and hold make more than 11% over the long term (30 years). At current prices, I predict more likely under 8%. -mb<<< You have been say pretty much the same thing over at least the last two years, but probably longer, that the long term Intel investor would under perform virtually all other instruments. >> ************************************ Mary, Following is part of article "Intel Looking Swell", fromfool.com "Let's use one of my favorite, newly discovered tools for tracking a company's value-creation ability. Over the past five years, Intel's retained earnings account (earnings that are not paid out to shareholders in the form of dividends or buybacks or used for acquisitions) has jumped from $7 billion to about $22 billion (our estimate). During the same span, the company's market capitalization has ramped up from $56 billion to $287 billion as of the end of 1999. So, every dollar invested in the business over the past five years has turned into more than $15 of market value. And that's excluding the $72 billion market cap expansion so far this year. We'll take those kinds of results any day of the week, thank you very much. Personally, I like where Intel's business is going and feel confident in the returns the company will reap in the years ahead as a building-block supplier to the Internet. We'll see how Jeff feels about things next week." From fool.com ***************************************************** This company will exceed the $ 135 new price targets from the analysts and move to $ 160 and then split again. We are in the early stage of the build out of the internet and Intel is extremely low priced compared to other investments. Anyone that can't understand this big picture will miss out on the next big move up. Felix