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To: Gary Korn who wrote (30206)	1/13/1998 4:56:00 PM
From: John Stinnett	Respond to of 61433

All, Jim Cramer on Yahoo chat at 5:00pm est jcs

To: Gary Korn who wrote (30206)	1/13/1998 5:27:00 PM
From: Maverick	Respond to of 61433

INTC beats First Call estimate of 90 cents/shr (not $0.92) by 8 pennies. Intel Corp (INTC) 77 +1 3/8: leading chip maker reports 4th qtr net $0.98 a share, 8 cents above the Street estimate and higher than most "whisper numbers." Revenues rose to $6.5 bln, 1.6% yr-over-yr and 5.5% sequentially; expects 1st qtr revenues to be flat on a sequential basis; sees FY98 gross margins of plus or minus 55%. High tech is fast becoming the market's neglected stepchild, but technology stocks are still best for the long haul. So says Michael Murphy, editor of California Technology Stock Letter, who is putting his money on two groups: electronics and biotech. Giant chipmaker and microprocessor maker Intel (INTC) is his top pick in electronics. And in the biotech sector, Vical (VICL), a lilliputian developer of pharmaceutical products for human gene therapy, is his favorite. Murphy, author of a new book on tech stocks, has an unusual way of assessing companies: Since research and development lead to new products, he views R&D as the key to growth. ''By adding the R&D spending to earnings, we get a better picture of the real value.'' Before a company's R&D pays off, a stock is usually depressed. ''That's when we buy,'' he says. After R&D kicks in with new products, the sales and earnings climb--and the Street bids up the price. ''That's when we sell,'' says Murphy. He insists that Intel, which funnels vast sums into R&D, is a bargain at its current price of 73. For five years, its earnings have grown twice as fast as those of the Standard & Poor's 500-stock index, notes Murphy. In the coming five, its earnings should grow 20% annually, vs. 8% to 10% for the S&P. Furthermore, the S&P trades at a price-earnings ratio of 22, while Intel has a p-e of 18. ''So you have a stock that has been robustly outpacing the market--and selling at a big discount,'' notes Murphy. He believes that Intel will climb back up to 100 before the end of this year. (It hit 102 in early August, 1997.)