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

To: Lee Penick who wrote (42080)	12/12/1997 5:26:00 PM
From: Eugene M O'Donnell	Read Replies (2) \| Respond to of 186894

Lee, I think you should keep in mind that fear is as strong as greed. Many people think that since the Asian economies have taken a dive, they will no longer buy any PC's next year. Not only that, but no one will ever build any wafer fabs again, since the Koreans are obviously up to their collective backsides in debt, and won't be able to buy all that nice AMAT equipment. I bought AMAT when its PE was 16 thinking it was a no-brainer. I subsequently dropped to 12, which was sickening, but then popped up to PE of 40 (at its peak this summer of a post-split $40/shr). Too bad I sold on the way up at a mere 50% profit. The point I would make is that INTC will definitely earn at least $4.00 a share next year, and more like $5.00. It will rebound as this becomes apparent, and if you buy it now you will look like a genius. Unfortunately, you may see 60 on the way to 100. That is the nature of the market beast. Food for thought, GENE

To: Lee Penick who wrote (42080)	12/12/1997 8:31:00 PM
From: Paul Fiondella	Read Replies (1) \| Respond to of 186894

No I'm not anti-Intel I bought Intel in the past when it was in my opinion severely undervalued. I believe it was about 40 pre-Pentium. I sold it in the 70's. I repeated again when it corrected. So I have been long on the stock in the past and have made money going long. We have different opinions, I believe as to the valuation of the stock in relation to projected earnings. I think it is almost a certainty that earnings will decline and growth rates will decline in the next two quarters. I see Intel's stockholders as victims of poor judgement with regard to the asset inflation of this bull market. Real value in relation to perceived value remains to be figured out. Trading: To answer your question, I short without using options strategies to hedge. I rely upon my cash position which I like to keep deep enough to handle the upside. It also forces me not to overinvest. I know I have to keep a certain amount of cash around just in case. Is 60 justified: Well where was the stock a year ago! Same company and slightly worse position with less forward prospects this year. Stock price is a function of earnings. In absolute terms is this or any great company worth the stock price times the outstanding shares? These prices have been way too high. Of course I'm not going to short the stock below 70 or Paul Engel might claim vindication!