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To: Dwight E. Karlsen who wrote (45384)	1/13/1998 11:27:00 PM
From: Fred Fahmy	Read Replies (1) \| Respond to of 186894

Dwight, <Regarding tonight's events, what I was shocked at was that Dan Niles, who is paid good money to be called an analyst, claimed tonight to be "shocked" that Intel's gross margins should be going down to 55%. Intel beat the drum on this point at last quarter's earnings. How is it possible that this so-called analyst didn't know about this?> I found this to be incredible when I read it?? Absolutely unbelievable!! Intel management has been telling analysts for the last 6 quarters that they see longer term margins returning to the historic 50 plus or minus a few percent level. Did Niles think Intel was joking?? Did he think margins would stay flat for a couple years and the one day suddenly drop to 50%?? You've got to be kidding. Oh well my view on analysts is summed up in the link below. exchange2000.com I don't know if Niles fall under category 1 or 2 but either way his comment today was pathetic. FF

To: Dwight E. Karlsen who wrote (45384)	1/13/1998 11:30:00 PM
From: Steve Porter	Read Replies (1) \| Respond to of 186894

Dwight, These analysts are just completely clueless when it comes to techs. Techs are perhaps the most fluid of any of the major industry groups (other than maybe utilities, but I still say techs). The problem is techs (or people buying technical gadgets) are completely optional. You need heat and light.. but you don't NEED a new computer (unless you have a 486-25sx or earlier ;-) ). The analysts just can't change and adapt fast enough. Most of them were trained in the old school markets, before the advent of modern style high-tech firms. They are incapable of dealing with short product life-cycles, correctly estimating inventory build-ups etc. Face it.. unless you concentrate on tech and ONLY tech, you will never be in a good position to comment on it.. and most of the analysts have their hands in so many pots they can't keep track. Steve Cyrix/NSM Rule!