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

To: henry tan who wrote (47361)	2/6/1998 8:33:00 PM
From: Paul Engel	Respond to of 186894

Henry - Re: "would INTEL P/E go as high as MSFT ? :-)" I just checked and Microsoft seems to have a P/E of 52+. The only way Intel would get that high of a P/E would be if their earnings dropped to near zero and their stock dropped as well - so the P/E would be expanded by a "generous stock price" (more than zero) divided by a miniscule "E". As for Intel vanquishing Cyrix and AMD - or rather, Cyrix and AMD self-destructing - the "analysts" would still trumpet these companies as "potential threats" to Intel and such other vague apologies for non-performance. By keeping an aura of fear surrounding Intel's profits and margins, the P/E values will remain in a decent reality zone. However - if Intel once again goes bonkers with profits - due to the lack of competition, then the P will go way up just to maintain - or strengthen the P/E ratio - because the E also rises. Paul