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

To: Paul Engel who wrote (43268)	12/28/1997 2:03:00 AM
From: chirodoc	Read Replies (2) \| Respond to of 186894

<<<<<What happens to the 10 or 15% that do not go down....and why? ....go look at a chart of sony (SNE) and take a look at how good companies do in bear markets. japan has had an 8 year bear market and the long term chart of sony still looks pretty good. .....conclusion: if a company is savvy, they will learn to make money in any environment--just might take them a year or two to retrench. but, by studying japan you can learn a lot about what bears do to stocks.

To: Paul Engel who wrote (43268)	12/28/1997 9:56:00 AM
From: Rarebird	Read Replies (1) \| Respond to of 186894

Paul, " What happens to the 10 or 15% that do not go down....and why? Typically, in Bear Markets in this country the sectors that buck the trend are Natural Gas stocks, Auto Parts Suppliers ( people hold their cars longer and make repairs) and the few needles in the haystack that manage to increase their market share and earnings dramatically. The Precious metals and real estate can go either way in this environment. To be more specific, it depends on the type of Bear Market. This one has begun as a result of a projected deceleration in earnings growth. PE Ratios contract in this environment, especially the companies whoose earnings are perceived to be vulnerable to the Asian crisis. Is it any surprise that the stocks that have recently hit new highs are the elecrical utilities, telephones, and Reits, many of which have little or no exposure to Southeast Asia? Will it continue? That depends on the actual earnings which will come out shortly and more importantly, the conference call. My read here is that it will get worse for the technology sector before its over sometime in the second quarter of 98. I expect a Bear Market climax at that time. Since the technology sector was one of the first sectors to get hit, it will be one of the first sectors to rebound. I think ultimately Intel will come out of this Bear very strong with a nice rally. But let's not underestimate the ferocity of the Bear here and its further impact on share prices in the first half of 98. I think Intel can and will go down into the mid 50's before it's all over. That will be the time to really step up to the plate and BUY BIG TIME! Why? Because this company has the Vision, Resources, technological expertise and ingenuity to remain the DOMINANT Player in its industry. Intel has positioned itself in the future magnificently. I have no doubts about the great future of this company.