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To: Mary Cluney who wrote (45443)1/14/1998 12:45:00 PM
From: Barry Grossman  Respond to of 186894
 
Mary, Re: The question is still why MOT is selling at 50% premium to INTC?

Because MOT is overvalued and INTC is undervalued IMO.

This may change by this time next year.

Barry



To: Mary Cluney who wrote (45443)1/14/1998 7:08:00 PM
From: Joe NYC  Read Replies (1) | Respond to of 186894
 
Mary,

The question is still why MOT is selling at 50% premium to INTC?

I don't follow MOT, so I don't know about their estimated earnings growth. I guess the market believes that MOT can grow faster than INTC.

If the growth rate of INTC exceeds market expectation, the investors will be rewarded.

Joe



To: Mary Cluney who wrote (45443)1/14/1998 7:19:00 PM
From: Joe NYC  Read Replies (2) | Respond to of 186894
 
Mary,

What matters as much as earnings and earnings growth is a higher P/E.

I think P/E ratio and expected earnings growth (of all participants in the market) are highly co-related.

Joe