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

To: tejek who wrote (125232)	1/17/2001 12:38:56 PM
From: Dave	Read Replies (1) \| Respond to of 186894

IMO, Intel needs to be buying the BRCDs and the JNPRs; companies that are state of the art now. I'm just guessing here, but maybe it's because at $44 billion JNPR is still a ridiculously overpriced bubble stock. Their estimated growth rates in 2000 and 2001 are 35%, while their P/E is over 300. Similarly, BRCD would cost them $22 billion. BRCD's estimated 2000 and 2001 growth rates are 121% and 52%, which is great, but with a P/E of 332, I'm sure they can find more prudent investments. Intel doesn't need to invest in fully valued, or overvalued, "companies that are state of the art now." They're not a high-tech mutual fund. They need to invest in companies that will have state-of-the-art products tomorrow if Intel shares resources with them, and that enhance Intel's product line. Dave

To: tejek who wrote (125232)	1/17/2001 12:41:12 PM
From: Road Walker	Read Replies (2) \| Respond to of 186894

Ted, re: "so why doesn't Intel go for the more cutting edge companies?" That's been discussed on the thread. Some agree with you (Mary again). I think Intel's thoughts are that they can buy an also ran, leverage Intel manufacturing skills, technology, and their distribution to make the company a leader. Also, I think Intel thinks of themselves, in buying other companies, as a consolidator of different but complimentary technologies that can become bigger than the sum of their parts. So far, this hasn't worked out, to my knowledge. John