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

To: Road Walker who wrote (41247)	12/1/1997 9:25:00 PM
From: Randy Ellingson	Read Replies (2) \| Respond to of 186894

I think a #4 could develop (unless this is what you meant by your #3): 4. Intel's PE could expand if, after a few more years of rapid growth in both revenues and EPS, the market decides that the CPU industry is one that will continue at average growth rates exceeding the market average EPS growth. If the exceptional growth becomes 'reliable', PE will rise above even current levels. Randy

To: Road Walker who wrote (41247)	12/2/1997 12:28:00 AM
From: Joey Smith	Read Replies (2) \| Respond to of 186894

John F., I agree with your #3. Its the current sentiment which dictates the PE. Take a look at IBM. Currently trading at a new all-time high and a very high (if not highest) historical PE. Its PE may even be higher now than Intel's, but is IBM's future growth rate (a few years out) better than Intel's??? NO WAY! But, right now, IBM is considered a "safe-haven" while Intel is still considered "uncertain" due to PII transition. But, all intel investors should be comforted by the fact that sentiment can change very quickly...once the analysts start turning in favor of Intel again, this stock will jump quickly. joey