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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (6471)	3/1/1998 1:04:00 PM
From: Logain Ablar	Read Replies (1) \| Respond to of 42787

Hi Chris: My disclaimer 1st. I've been too busy to keep up with my research and am just running with long stock positions in WIND, ARSW & LGND. On INTC I was in options, gambling in Oct & Nov's with some of my gains last year, which expired worthless. I no longer have a position and probably won't use options until later in the year when I have more time. Now for my 2 cents. The fundamental of INTC really haven't changed from October except were farther along with thier sales and development. What has changed is the streets sentiment of the companys prospects of meeting revenue and earnings projections. The recent rally started when the company surprised the street on the high side with last quarters earnings. In October although INTC warned in the spring the company surprised on the low side (which triggered the retreat to low 70's). The retreat started from high 90's once rumors (and T. Kurlack warning) about 3rd qtr. earnings. Kurlack's comments back then were a worry more about 2nd and 3rd quarter this year with falling prices (and INTC's ability to lower cost to keep profit margins) and competition from AMD and Cirix. I think we'll see more competition from AMD and Cirix (a National Semiconduct subsidiary now) and this will hurt INTC. Not sure if the hurt will be enough to impact growth and earnings. INTC is growing in other areas (Networking for one) that may offset the decrease in margins and increased competition in processors. Still a great company just a little more competition to the processor line. On a separate note the under $1,000 PC (i.e. CPQ) are not very good products (you get what you pay for) and the quality issues with lack of service will hurt CPQ. Have to go now but in a week or so (caught up with tax returns etc.) I'll be able to comment more. Hope your surviving el nino. Tim