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

To: Sr K who wrote (49681)	3/5/1998 10:59:00 AM
From: J P Cross	Read Replies (1) \| Respond to of 186894

The INTC announcement yesterday was nothing new. On 1/13/98 - TechInvestor article reported at the time of INTC Q4-97 earnings announcement that Q1-98 revenue would be flat...as follows...an excerpt from the article... "Looking ahead to the first quarter, Intel said it expects revenue to be flat at $6.5 billion, and margins will be down slightly from the 59 percent in the fourth quarter. Intel said its gross margin estimates for 1998 are 55 percent. Over the long term, margins will be about 50 percent, the company said. In the first quarter, Intel said it expected expenses to be lower than the $1.4 billion reported in the first quarter. R&D spending is expected to be $2.8 billion for 1998, compared to $2.3 billion in 1997." As you can see the pre-announcement yesterday is really "old news" and something INTC was expecting. How much of this has to do with DELL competitors adjusting their business models to Just- In-Time inventories?? Bill Gates said there are 250,000,000 million PCs in circulation today. In five year there should be over 1,000,000,000. Who do you think is going to make the bigger bucks than ever from all of the PCs sold? It will most likely be INTC, MSFT, DELL, CPQ...etc. The same blue chip tech companies who have been leading the pack. With the enormous R&D requires to develop new products it would be almost impossible to catch INTC and the other blue chip tech leaders. INTCs R&D will be 2.8 Billion in 98. This is more than other competitors will make in a year. I would like to know what Michael Murphy would value INTC at with his R&D valuation method?? INTC would probably be a cheap stock right now. FWIW, IMO this is a buying opportunity for INTC and other tech stocks if the market corrects due to this "old news". JPCross