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

To: Road Walker who wrote (104102)	6/6/2000 4:01:00 PM
From: bigja	Read Replies (1) \| Respond to of 186894

John, According to PaineWebber analyst, MSFT may be the first to attribute slower PC growth rates and sales to limited supply from Intel. Lets hope Dell, GTW etc don't deliver the same message in the coming weeks. Microsoft Rating: Buy (MSFT-$66.88)(2) Microsoft: How Strong is PC Demand? KEY POINTS * In a private dinner last night with Microsoft last night, senior management seemed more sanguine about the PC outlook. Management continues to project high single digit growth rates for commercial PC shipments in the June quarter - but indicated that supply constraints were holding back shipments and that demand was much better. This is a clear shift from the positioning at the end of last quarter. The key hold back for the major OEMs was Intel microprocessors which should have much better supply in the second half of the calendar year (or Microsoft's next fiscal year). * Management was also more upbeat about future growth rates - it described the 15% revenue growth goal as more of a minimum objective - and Microsoft has potential for much stronger growth rates if it succeeds with its strategies. Management will also be more conservative in managing expense growth. * The key growth engines include: 1: higher revenue yields on desktops 2: high unit growth and better revenue yields on servers 3: new appliance and server infrastructure opportunities in areas such as Xbox, wireless 4: growth and expansion of MSN and other internet properties. * * Investment recommendation: We view Microsoft as a compelling buy. Because of the impact of a slow commercial PC start and constrained supply along with a non-stop flow of bad legal news - the stock is probably bottoming. And we think the operating results and the legal news should start to improve shortly. We are particularly bullish about Microsoft's position to compete for Internet Server business and to be a big winner in our "draining the server" theme.