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


To: GVTucker who wrote (137968)6/22/2001 3:38:33 PM
From: Road Walker  Read Replies (1) | Respond to of 186894
 
GV,

re: Then let's grow those earnings at 20% per year. 5 years hence, earnings will be $1.59/share.

Yes but that would be only slightly more than Intel earned last year. I think many people assume that once there is a turn in the semiconductor marketplace, Intel earnings will return rapidly to 2000 levels. After that, they will grow at a more normal rate. That's the reasoning by the markets, and the only way to justify Intel's current stock price.

re: I didn't think that calling 15% annual growth into question would generate this many objections.

Intel's stock price can fluctuate 15% in one month, so 15% in the next year doesn't seem like much to most observers. Also, Intel stock price has seen many short runs in past years of 50% - 100%, and then gone flat for a very long period. Not making any predictions, just saying that it's not a totally unreasonable expectation.

John



To: GVTucker who wrote (137968)6/22/2001 4:21:34 PM
From: Tenchusatsu  Read Replies (2) | Respond to of 186894
 
GV, it sounds like you think a P/E ratio of 35 is at or over "fair" valuation for Intel. Based on the highest of analysts' EPS estimate for 2001 (0.64), do you think INTC will go below 22.4 this year?

Tenchusatsu