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: Tunica Albuginea who wrote (44691)	1/9/1998 6:58:00 PM
From: Jules V	Read Replies (2) \| Respond to of 186894

I think its funny that now that we hit a patch of trouble suddenly Asian markets are deemed not so important. ie. Through the "goldilocks" years among the major driving factors were hyped as: corporate restructuring, productivity improvement due to technology, low inflation, growth of world markets. The market was firing on all cylinders in terms of valuations discounting future earnings growth. A stock only missed earning for a few quarters or by a few cents to be punished. Removal of economies with 6-10% growth will impact expected profit growth to at least that extent on many bottom lines. This will lead to more "irrational inexuberance" than necessary and temporary punishment of the innocent. Using the P/E valuation method intc does not appear to have excessive growth built in right now. As long as it maintains its margins that is. This likelihood looks good by Merced time I would bet.

To: Tunica Albuginea who wrote (44691)	1/9/1998 7:09:00 PM
From: k.ramesh	Read Replies (1) \| Respond to of 186894

<Asia is only 10%>,but they accounted for a heck of lot of the growth. read in the Financial Times that Asia accounted for 70% of the growth in Oil consumption between 90 and now. Looking from your point of view, Yes Japan has been in a recession since 89 and the US did not do too bad, Europe was growing slowly and yet the US managed to grow etc. But the real point is that US Stocks and tech's in particular are Valued assuming high growth rates, It is always what is happening at the margin that matters. A couple of million share trades brings the market cap of INTC and MSFT by a lot larger amount. < MSFT is bigger than country x> Do you really mean that, yes in market cap maybe, that is only because of prevailing consensus on MSFT's growth rate, if the rate is threatened the fall will be much faster than country X's GDP.