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

To: limtex who wrote (141035)	8/7/2001 2:56:52 PM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

Re: "How did Mr Kumar do on the same issue?" Here's Ashok Kumar's BULLISH comments - in late August, 2000: {===============================} Intel Corporation (INTC - 73 7/8) August 29, 2000 Ashok Kumar, CFA, 650-233-2289, akumar@pjc.com; Amir K. Ahari, 650-233-2271, aahari@pjc.com; Paul H. Mansky, 612-303-6474, pmansky@pjc.com Flogging A Dead Horse? Rating: Strong Buy, Aggressive Price: $73 7/8 52-Week Range $75 13/16 - $32 1/2 FY End: December 12-Month Price Target (50 x 2000 EPS Estimate) $90 Shares Out (Mil) 6,698 EPS* 1998 1999 2000E Market Cap (Bil) $494.8 Mar $0.20 $0.29 $0.35A Average Daily Volume (Mil) 33.6 Jun $0.17 $0.25 $0.45A Book Value $2.62 Sept $0.22 $0.28 $0.42E Dividend $0.03 Dec $0.30 $0.35 $046E Debt/Total Cap 2.4% FY $0.89 $1.16 $1.74E 3-5 Year EPS Growth Rate 20% P/E 83.1x 63.7x 42.5x Mkt. Cap. /FY99 Revenue 16.8x Mkt. Cap. /FY00 Revenue 14.2x Revs ($ Bil) 1998 1999 2000E 00 P/E to Growth 2.1x Mar $6.0 $7.1 $8.0A Jun $5.9 $6.8 $8.3A Sept $6.7 $7.3 $9.3E Dec $7.6 $8.2 $9.9E Quarter End September 30, 2000 FY $26.3 $29.4 $35.4E Reporting Date October 2000 * Tables may not add due to rounding. Operating EPS. EPS reflects 2:1 stock split. Highlights: Intel has halted production and instituted a recall of its flagship 1.13 GHz Pentium III processors. This is primarily because Intel is pushing both the process (0.18 micron/aluminum) and PIII micro architecture (a five year old core) envelope. As a result, some circuit is intermittently failing at 1.13 GHz. It will probably take a mask change and 30-60 days to restart shipments. We estimate that the company has shipped less than 10,000 units to date and, as such, the financial toll is negligible. Also, given that these products populate high-end systems priced at about $3,000, the opportunity cost is minimal. Intel is pushing an aging architecture too hard to outrun AMD's (AMD-#) Athlon. Having missed the transition to copper interconnects on its 0.18 micron process has not helped either. The company is announcing products they cannot ship and, it turns out, do not even work properly. While the financial impact is negligible, it makes Intel look bad to their customers and gives PC OEMs one more excuse to use Athlon instead. P4 should fix the speed problem, but it will take longer to fix the image problem. ___________________________________________________________________________ Nondeposit investment products are not insured by the FDIC, are not deposits or other obligations of or guaranteed by U.S. Bank National Association or its affiliates, and involve investment risks, including possible loss of the principal amount invested. Past performance does not guarantee future results. We consider our sources reliable. Accuracy and completeness are not guaranteed. Information is subject to change. Transactional details should not be relied on for tax purposes and do not supersede normal trade confirmations or statements. Messaging outside U.S. jurisdictions from U.S. Bancorp Piper Jaffray to non-institutional parties is not intended for solicitation purposes. Electronic mail sent through the Internet is not secure. We will not accept time-sensitive, action-oriented messages, transaction orders, fund transfer instructions or check stop payments electronically. If you are not the intended recipient, notify the Sender. This information is intended only for the person named above and for the purposes indicated. Do not distribute this message without written consent of the author. Non-business opinions may not reflect opinions of U.S. Bancorp Piper Jaffray and its affiliates. U.S. Bancorp Piper Jaffray and its affiliates reserve the right to monitor all e-mail. Securities products and services are offered through U.S. Bancorp Piper Jaffray Inc., member SIPC and NYSE, Inc., a subsidiary of U.S. Bancorp. ___________________________________________________________________________ _________________________________________________________________________