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

To: SisterMaryElephant who wrote (43792)	1/4/1998 9:35:00 PM
From: Mo Chips	Read Replies (2) \| Respond to of 186894

<<And yet Intel's stock price went from the mid 90's to low 70's or roughly 20-25%.All things being the same, I think you may have pointed out how grossly oversold INTC has been.>> Next years estimates are for a meager ~9% rise in earnings. At 17x next years earnings I'd say this may not be the case. I think unless there are surprises out there, we could easily see a fall to the 60s or even the $50s... Mo

To: SisterMaryElephant who wrote (43792)	1/5/1998 12:57:00 AM
From: Charles Skeen	Read Replies (1) \| Respond to of 186894

Re: <<I think you may have pointed out how grossly oversold INTC has been.>> This is still a matter of opinion. Actually, it is normal for the P/E to decline when the growth of E slows down -- kind of a double whammy. But INTC is only oversold if earnings growth can resume the growth rate that was expected prior to the recent revisions. And, IMO, deflation is already hurting Intel's ability to maintain profit growth in its traditional processor market. Think about the impact of 40% price cuts. When you have 60% to 90% gross margins on some products (as Intel does), cutting manufacturing costs by 40% has no real impact at all. Charlie.