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

To: Amy J who wrote (102664)	4/19/2000 12:45:00 PM
From: Tim McCormick	Respond to of 186894

1)There will be a time when Intel Capital loses money. 2)Intel Capital is worth what it is worth- 11B 3)Do you pay a multiple of realized capital gains for a mutual fund? 4)Comparative valuation is a suckers bet.

To: Amy J who wrote (102664)	4/19/2000 2:09:00 PM
From: GVTucker	Read Replies (1) \| Respond to of 186894

Amy, RE: Your Intel Capital analysis I think you're comparing apples and oranges with your comparison of Intel Capital to CMGI. Earnings for CMGI are rather artificial. If you want a more reliable measure, I think a multiple of book would work well, since we have the book value for both CMGI and Intel Capital. CMGI currently trades at 3x book value. 3x book value for Intel Capital would be $33 billion, a little bit off your estimate. In addition, contrary to your guess, I don't think that a 1x PEG would be appropriate for Intel. Your 1.5 guess seems appropriate.