Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Dave who wrote (125239)	1/17/2001 4:37:47 PM
From: tejek	Read Replies (1) \| Respond to of 186894

Dave, 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. You are right.....I was using JNPR to represent the type of company that I think is desirable. However I would not buy JNPR because its over valued. What I think Intel needs to do is what CSCO does....buying private companies or buying foreign, public companies that don't trade on the American exchanges. CSCO still pays a premium but not as big as the one JNPR would command. 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. I disagree....this is not about making wise investments to maximize the profits on your free cash. Its about coming up with new products that are so state of the art that you name your price in the marketplace and have gross margins north of 65. 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. That hasn't worked so far....I think tech innovation moves too quickly for this kind of strategy. It only worked with PC chips when AMD was the chief competitor, but in reality, a non-competitor.... when AMD became a true competitor this past year, Intel began to experience problems. And maybe that's at the heart of the issue...Intel thinks the rest of the world is like the one that AMD and it occupied for most of the past decade. ted