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

To: Road Walker who wrote (103290)	5/10/2000 9:51:00 PM
From: Mani1	Read Replies (2) \| Respond to of 186894

John re <<And assuming a real market meltdown, who will outperform, Intel or AMD?>> My guess is INTC would do worse than AMD since they got a higher forward PE. AMD is already at a PE of 15 or so. Assumming a downtrun in the semi business (not the same thing as financial market downturn) INTC should fair better IMO. Mani

To: Road Walker who wrote (103290)	5/10/2000 9:57:00 PM
From: kash johal	Respond to of 186894

John, re:"And assuming a real market meltdown, who will outperform, Intel or AMD? Remember the balance sheets." Well stocks are not valued on balance sheets they are valued on earnings (real, imagined etc). If we have a meltdown I suspect that both companies will likely whacked 50% or even more. Many other sectors have already undergone this outside of the SOX, and telecom. If we go to a P/E based valuation system and Intel earns $3 this year a $60 price seems reasonable - using a 20 P/E assuming its top line growth will be in 10-15% range. AMD is growing top line in (50%++ YOY range) much faster right now due to flash and Athlon. And it is likely to earn $4/share this year. If we assume a 15 P/E then AMDs price may get to $60 or so - which is not too bad. I think AMD is the lower risk - but thats just my opinion. regards, Kash