Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Yaacov who wrote (41900)	12/10/1997 3:24:00 PM
From: Intel Trader	Respond to of 186894

Yeah Barry, ditto to Yaacov's message. I want to know the answer too!! ; ) it

To: Yaacov who wrote (41900)	12/10/1997 7:33:00 PM
From: Barry Grossman	Read Replies (5) \| Respond to of 186894

Yaacov and Intel Trader, I wish I had the answer to your question but all I have is my opinion but since you asked, I'll give it to you. As I see it, INTC has been trading in a range of 70-80 since last spring. It rose above that range a few times, only to fall back to the same level. What has occurred since it first rose to the 140-150 (presplit)level? Let's see: On the plus side - almost 9 more months of earnings - about $5B more earnings in the bank - .25 micron process rolling along with good yields with PII now 25% of production - new products appearing in a never ending stream - a continuing new product roll-out as far as we can see - internet booming - server business booming - high end portable competition is non-existant - DEC lawsuit settled very favorably to both parties - infaltion still at 2% or less - US interest rates now around 6% and going down - consumer confidence at the highest level in 12 years (according to Money magazine today) - unemployment rate lowest in years and years - jobs plentiful - employment earnings are high - US budget approaching being balanced - US government still more or less in gridlock (a good thing IMO) - European ecomomy recovering quite nicely - competition losing money and merging because of weakness - cold war is still over - PC component costs down significantly (disk drives, memory, monitors, CD's, modems, motherboards, chips, etc.) enabling PC costs to decrease thus enabling cost of entrance to computer ownership to drop to new levels without sacrificing basic usability while allowing internet accessability to greater number - Asian problems will allow the Fed to avoid raising rates which they would have been more inclined to do given the perceived tighness in the labor markets - and more. On the negative side: Asian slowdown will mean some lost sales but I think this will be more than made up for in the rest of the world because of lower component costs coming from that region so I'm not sure this is really a negative at all - Slower sales growth in Japan (but mitigated by huge growth of portable PC's share (dominated by Intel) - product transition times mean uneven quarter to quarter growth (but year to year growth remains very strong), analysts still have no clue as to the future on this company. To sum up, I think we are waiting for some obvious good news - news that can't be argued with - like great earnings. We might have to wait as long as 2Q98 or 3Q98 for this but in the meantime, this range seems to be holding - as I am. I am every bit as confident in my investment in Intel as I have ever been. All the noise has gotten a little louder lately, but it's still noise. Barry