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

To: GVTucker who wrote (153444)	1/2/2002 10:46:41 AM
From: wanna_bmw	Respond to of 186894

GVTucker, Re: "It is important that I don't think that "tech" is going to follow the same pattern. This whole discussion grew precisely because I said that the "tech" sector DIDN'T need to collapse to see Intel's stock price cut in half, as you maintained. Heck, Intel's stock price declined a heck of a lot more than that at one point last year and we didn't see the tech sector collapse." Ok, I see your point, but I'm not sure I agree with the conclusion. Last time Intel's stock price fell that far, many other semiconductor and technology companies went with it (in fact, the entire U.S. industry eventually followed). There were multiple issues, and I recognize most of them, but what reasons are there now that could cause Intel's price to drop again like it did last year? I agree that Wall Street is pricing the stock high, but there are a lot of companies that get similar treatment. Some people are arguing that if another company had a stock valuation like Intel's, that it could and should fall dramatically. The only fault in that argument is that other companies wouldn't be Intel. Not only does Intel have a great track record when it comes to weathering out downturns in the economy (and even coming out stronger than they go in), but they also have an exceptionally strong product line-up that seems to continue well into the future. They are poised to be able to control costs, and the market is responding very favorably to their current product lines, despite competitive pressures. I'd say that this singles out Intel from other mediocre companies, and that's been my previous argument the whole time. I'm still not sure, though, if you are arguing what "could" happen, or what "will" happen. I am always willing to accept "could'ves", but in this case, I can't imagine investors suddenly discrediting the world's best semiconductor manufacturer - just like that. I think the vacuum of Intel's absence of strength in this sector would affect many companies around it. I am not so sure I agree with the theory that the rest of the economy could get along without Intel. wbmw