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

To: tcmay who wrote (143107)	9/7/2001 2:42:13 PM
From: GVTucker	Respond to of 186894

tcmay, RE: No value investor would have bought Intel at nearly any time in the 70s and 80s. I would disagree strongly with that thought. There were many times in the 70's and 80's that buying Intel would have pleased even the most grumpiest of Gramm and Dodd investors. There were many, many times that Intel would fall below 20x current year earnings in semiconductor downcycles--in other words, Intel was below 20x cyclically low earnings. There were even instances that Intel traded at 10x current year earnings. This was a matter of "buying the story," as the current jargon goes. This was examining the fundamentals...not the "fundamentals" of current earnings, P/E, cash, etc., but the more basic fundamentals: is this company likely to dominate in some important technology or market? It is possible to both buy the story and be a value investor. When those two worlds collide, that is where the best returns are found. The hardest thing to do is to wait for the collision to occur.