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

To: Tony Viola who wrote (110018)	9/15/2000 3:11:30 PM
From: GVTucker	Read Replies (2) \| Respond to of 186894

Tony, I'm already on record as saying that I thought that Intel was way too high when it was $20 higher. When I think of a stock as a bargain, I think of it as absurdly underpriced. That doesn't happen too often, but then again, I usually don't have too many stocks in my portfolio either. Hey, there's nothing wrong with buying fairly priced but excellently managed companies, which Intel is arguably at current levels. Lots of people have made lots of money doing just that. It's just not my style.

To: Tony Viola who wrote (110018)	9/15/2000 6:05:15 PM
From: EricRR	Read Replies (1) \| Respond to of 186894

I think I know what it is for CSCO and EMC. NTAP, JDSU, BRCM? Maybe we need to normalize all stocks to a P/E of 20 and start over. Rue the day you get your wish. But it may come sooner than you (we) expect. BTW- AMD's PE is about 10.

To: Tony Viola who wrote (110018)	9/15/2000 8:21:55 PM
From: Harry Landsiedel	Respond to of 186894

Tony Viola. Re: "Maybe we need to normalize all stocks to a P/E of 20 and start over." Over the long haul, it has been demonstrated that a company's PE's will equal the company's growth rate. So if a company's growth rate is 20%, buying a stock with an average PE of 20 would represent fair value. A PE of 10 would be screaming bargain, like those GV Tucker seeks. Buying such a company when it has a 40 PE may necessitate that you wait several years while the earnings catch up to the price. So if Intel's long term growth rate is 20%, then an AVERAGE PE of 20 is appropriate. Since Intel's average low PE over the last 10 years has been 53% of the high PE, a forecast of a high PE of 26 and a low PE of 14 would not be unreasonable. (Intel's ACTUAL PE over the past 10 years has averaged a high of 26.1 and a low of 13.4, so these aren't far off) So a fair price for Intel based on the company making $1.70 for 2000 would be 44. A bargain would be 22. The ironic thing to me is that Intel's growth rate over the last 10 years has averaged 32%, so for most of the time you could buy Intel below it's growth rate. There are stocks out there which are bargains but they are probably not in the technology area and it is also why many analysts find technology stocks so "overpriced", when compared to other sectors. HL