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

To: Paul Engel who wrote (38912)	11/5/1997 12:04:00 AM
From: Lee Penick	Read Replies (1) \| Respond to of 186894

To Paul and other Intel investors, As people have mentioned before, the Nov 1997 issue of Worth magazine allocated many pages to Intel. The cover reads, "One Stock, Everything You Need to Know About the Stock that Will Drive Tomorrow's Market - and How it Could boost your Portfolio" So far it has not boosted by portfolio, but it has indeed driven it. They say, "we think it's still a good bet at any price up to $105 a share. We'd advise buying Intel whenever its price dips well below that amount". Conspiracy Theory time: Page 115 and 116 discuss the companies stock options for employees. "In the first quarter of 1997, Intel's bill for stock purchases was $1.2 Billion - 60 percent of net income." In general, it appears that share repurchases are about 20 to 25% of net income. So very large dollars are being spent...billions. Would Intel Management manage the news in such a manner to allow the stock price to decrease, thus enabling the company to make share repurchases at a significantly lower price for the company option program? I am not implying any wrong doing. I don't think this would be illegal or immoral. But I do believe they may be presenting the news and quarterly estimates in such a manner to achieve a desired result and save the company millions. Is Intel repurchasing shares now? Does any have access to this info? If they are buying at $75 instead of 100, that could save $250,000,000 if a billion dollar repurchase were necessary. Additional factors : 1) the information release concerning the Fort Worth plant came out negative, but didn't have to. (does one of the best companies in the world have one of the worst PR departments?) 2) Intel's estimate of 4th Quarter projected earnings was deemed to be very conservative. 3) Jules analysis said 3rd quarter estimate would have been easy to meet by adjusting R&D expenditures, etc. (Appeared they wanted to miss.) 4) DOJ probe - better to be lowly and humble when you have a big, big, market share, (and management certainly knew price cuts were coming in order to attack AMD and Cyrix in the "soon-to-be-obsolete" low margin, low end, small screen, my hard drive is full, I need more ram, sub zero market) Since the company could have done many things differently, but didn't, I can't help but wonder if it wasn't intentional (and probably beneficial in the long run). Those of you with more Intel experience than I, nearly all of you, what do you think? Lee