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

To: Amy J who wrote (102437)	4/17/2000 3:09:00 AM
From: tejek	Respond to of 186894

Hi Amy Even though Intel does good, this doesn't mean the market will respond favorably, e.g. Sun. However, Intel is one of the top market cap leaders, and good earnings from both Intel and Microsoft could have a strong influence. Intel and MSFT have much greater market influence than Sun, given that they both are Nasdaq and Dow components. Its critical that they do well this week.....even if they don't prompt a rally, they may be able to provide some stabilization. I would be very surprised if both did not have good earnings. That's what I am hoping. Although MSFT has prewarned to some degree with their talk of slow corporate pc sales in Jan and Feb. However, the recent drop is finally making folks look at the valuations on some of these companies (namely, the dotcoms whose P ~ epsilon). Its about time. Traders love the dotcoms and the newer IPO's because with out earnings, they don't have to worry about a price cap on the stock. In a fantastical world earnings can be anything you want them to be. From a valuation standpoint, MSFT is beginning to look pretty good to me, even on a historical basis. It also held up better than most stocks on Friday. I am afraid, though, the DOJ will be a growth inhibitor for a while. Intel has a slightly different story, in that it's PE is historically about 2Xs higher than normal. Having said that, I picked up some INTC on Friday at 110. I had some protective puts which got sold on Friday and generated some profit, which was used to buy those INTC. We will know on Tuesday Intel's fate and whether the current P/E is justified at all. But right now, no part of my portfolio is protected if there is a downside. I know.....a very scary thought. So, if INTC drops, my portfolio drops with it. INTC is about 58% of my public stock portfolio. Whether you are diversified or not, it doesn't seem to matter. However after last week, I wish more of my portfolio was in AMD...both AMD and Intel held up fairly well last week compared to others. Have a good one this week.....and maybe by next Sunday, the markets will have calmed down. And thanks for your comments. ted