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

To: Elmer who wrote (123950)	1/1/2001 3:03:18 PM
From: Harry Landsiedel	Read Replies (3) \| Respond to of 186894

Elmer. Re: I wonder if value investors will start catching on at these price levels?" Absolutely. As you point out, Intel's fundamentals are outstanding. It's weakness as a stock is its low predictability of earnings. According to Valueline, Intel is in the 65th percentile. (MSFT is in the 85th and CSCO is in the 90th.) The secret to owning Intel is to BUY when everyone else is selling and (if you're a mind to) SELL when everyone else is buying. Some value investors wait until the stocks drops 50% from its high before investing and Intel fits the bill right now. Another way to look at it is to buy at the low PE, which has averaged 17 over the last five years. If $1.50 is next year's consensus, that puts an entry price at $26. I have used this strategy in the past and it has worked quite well. Thanx for the name of the book. If you're interested in other books about Buffett's investment style, let me know, there are a couple I could suggest. HL

To: Elmer who wrote (123950)	1/1/2001 3:08:12 PM
From: Dan3	Read Replies (1) \| Respond to of 186894

Re: I wonder if we need to start thinking of Intel as more of a value company than a growth company Well, let's look at some other companies. GM EPS $9.13 Share Price $51 Growth Rate 12.3% (a value company) INTC EPS $1.50 Share Price $30 Growth Rate 13.2% AMD EPS $2.65 Share Price $14 Growth Rate Infinite (not a good thing - reflects bad prior year) If you want to assign it a value P/E instead of a growth P/E a reasonable price for the stock would be $9. I'd stick with the "growth company" valuation, if I were long Intel. :-) Dan

To: Elmer who wrote (123950)	1/4/2001 1:30:08 PM
From: Hightechhooper	Read Replies (4) \| Respond to of 186894

Elmer & anyone with option experience, I sold Jaunuary 37.5's today for 1 1/4. As I have mentioned, I really wanted to sell the 40's for $1 or more but I took a risk on the 37.5's because it looks like the net open interest on January calls and puts would imply a close in the 32 1/2 to 35 range. I know this type of evaluation is not a science but INTC has typically closed on expiration within 5% of this implied range. I really wanted to wait until tomorrow (after the employment report) to write them but I needed to get at least $1 for them to help my margin situation and I couldn't risk writing for a strike lower than 37.5 if the employment report generates a selloff. It could just as easily cause a rally but it seems INTC's Q1 outlook, combined with the ANALysts cutting 2001 estimates would bring the price back down after the upcoming conference call. I am now in the strange position of hoping INTC moves up, but only a little in the next couple of weeks. The last thing I want to do is lose my stock. I am so optimistic about INTC's business outlook once the P4 is in full ramp and the economy begins growing again. I will write a few more contracts tomorrow after the employment report and a few more next Tuesday after Chambers speaks at that analyst conference, but 90% of my shares are already written against. So did I screw up or will I be able to keep my shares? I don't like the feeling of betting against INTC but if I can view it as a way of collecting a dividend on shares I want to keep then I can justify it I guess. All comments are welcome. Thanks,