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

To: Eric K. who wrote (111022)	9/23/2000 6:32:41 PM
From: csmith	Read Replies (1) \| Respond to of 186894

This few cents shortfall is just temporary, right? After the Euro rises (intervention has started), the Europeans will have to buy more to catch up with their needs. This isn't a long-term growth rate issue. (Asia, US, Japan are showing good demand) So I question the need for the stock to fall so hard.

To: Eric K. who wrote (111022)	9/23/2000 7:00:27 PM
From: GST	Respond to of 186894

Erik: Right on. The issue is the decline in the growth rate and whether or not it is temporary or sets a new direction. 300 million shares at a 22% discount is a lot of shares changing hands. I believe the decline is serious and lasting. I also believe it is not confined to INTC or to semis, but is likely going to be broadly reflected in many industries in the very near future.

To: Eric K. who wrote (111022)	9/23/2000 10:46:30 PM
From: L. Adam Latham	Respond to of 186894

Eric K: Re: Even if the difference is "just a few cents," do you wish to argue that having a company's growth rate cut in half (which appears to be a reasonable inference from Intel's preannouncement) does not reduce the overall value of the company by almost 50%? What p/e would you attach to a company with a nominal annualized growth rate of 3% (real rate = 0%)? Intel's guidance was to reduce their sequential revenue growth estimates down to 3-5%. YOY revenue growth will be around 18%, assuming the mean of Intel's latest Q2/Q3 revenue growth estimate, 4%. Using the prior analysts estimate of about 7% Q2/Q3 revenue growth would have given a YOY revenue growth of about 21%. Thus, Intel's latest revenue growth guidance reduces YOY revenue growth projections by about 14%. Does this justify a 33% drop in the stock price? Hope you're able to follow my math. Adam - my opinion only, not Intel's