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

To: Gary Ng who wrote (125247)	1/17/2001 2:08:50 PM
From: John Hull	Read Replies (3) \| Respond to of 186894

Gary, re:"The main product line for Xircom as far I can tell are those PCMCIA network cards which Intel has its own offering and is slowly become an integrated part of a notebook." exactly. by-the-way, where do you think the Intel offerings come from? jh

To: Gary Ng who wrote (125247)	1/17/2001 7:46:59 PM
From: Amy J	Read Replies (1) \| Respond to of 186894

The main product line for Xircom as far I can tell are those PCMCIA network cards which Intel has its own offering and is slowly become an integrated part of a notebook. So what is so worthy in Xircom to pay a 30% premium ? ----- Hi Gary, Actually, this information is good news. Intel does a good job at selling "integrated parts into an existing Intel solution" because it means the sales channel concern is already resolved. An integrated solution into the mobile market means it already has an existing, successful sales channel. Thanks for your post - I was a tad concerned when I saw the low profit figures, but my concern doesn't apply if they intend to sell it into an existing, successful sales channel as your post would imply, i.e. mobile sales channel. I believe Intel does MNAs of "integrated solutions into existing Intel sales channels" quite well. Your post (and considering how well StrongArm is doing) would make me change my grade on Buyouts up to a B-. A 30% premium is good. Usually network companies go for 2X to 5X sales. Anything less than 2X is a bargain - evidently it's a good time to buy companies because overall stock market valuations are lower, so cash can buy more now than it did before. Regards, Amy J