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

To: wanna_bmw who wrote (168405)	7/17/2002 12:03:29 PM
From: Proud_Infidel	Read Replies (2) \| Respond to of 186894

RESEARCH ALERT-Intel earnings estimates cut NEW YORK, July 17 (Reuters) - Merrill Lynch said on Wednesday it cut its earnings estimates for Intel Corp. (NasdaqNM:INTC - News) after the world's biggest chipmaker posted results that were toward the low-end of Wall Street expectations. "Although Intel's tone regarding the third quarter outlook was cautious, the company is clearly seeing a modest seasonal improvement in its business," said Merrill analyst Joe Osha in a research note. He has a near-term netural rating on Intel. However, Osha cautioned against using a seasonal upturn as a reason to buy the stock and instead recommended selling into such a move. Intel closed Tuesday at $18.36 a share and was bid at $19.30 in pre-open dealings. "Given the uncertainty surrounding Intel's ability to get its margins back to the high 50 percent range when business recovers, we don't think that the valuation is sufficiently cheap," Osha said. Osha said he wants to see the stock trading on a mid-teens multiple of his new 2003 number, or 86 cents a share, to compensate investors for the risk surrounding Intel's business model currently. "We're not there yet, and we expect the stock to continue trading sideways for now as a result," Osha said. Intel said late Tuesday it would cut 5 percent of its work force and forecast that the current quarter revenue would be flat to slightly higher. The company said an expected economic recovery had not yet taken hold in its market.