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

To: Michael Bakunin who wrote (97937)	1/31/2000 6:11:00 PM
From: Road Walker	Read Replies (2) \| Respond to of 186894

MB, We have two different points of information: 1. Dell & CPQ say corporate demand is soft because of Y2K, but they both expect immediate recovery. 2. Dell and Gateway say their quarters were short because Intel couldn't meet demand for microprocessors. RE: "Even a small shortfall in worldwide demand relative to expectations can impact prices." Intel has stated that they are cannot meet additional orders above the projections of their customers. I've never heard them say that before. It leads one to believe that they are capacity constrained, and that OVERALL demand is not a current issue. RE: "Supply/demand affects microprocessor pricing just like any other market." This is not really true. If you have a mature, commodity product, with many competitors, the supply/demand equation is the most important aspect of prices. In microprocessors, you have a continually evolving product with essentially two players in the market, the products are value-added and anything but a commodity. It is true, however, that if sales slowed, Intel might lower prices to stimulate demand. RE: "However, I do not have enough information to quantify the effect. Have you?" No, I do not have enough information to quantify the effect of an oversupply of microprocessors. Do you have enough information to quantify the effect of an undersupply, as that appears to be what is happening? From the time of you post, it appears that you purchased your puts when the security was trading at about 96 1/2. Underwater so far. You will need this correction to continue, if you want to make a profit on that trade. What ex. and strike did you buy? Good luck, John