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

To: ed who wrote (50371)	3/10/1998 1:29:00 AM
From: StockMan	Read Replies (2) \| Respond to of 186894

ed, Re -- CPQ will probably make even this quarter ( However it may end up with a surprise, a happy one. You must agree that there are 20 more days before the book is closed for this quarter) When all else fails, there is hope!! Re -- Intel's current price is based on the 50% profit margin, if the margin continues to degrade.. You are assuming that Intel's management is sitting quietly and not doing anything about this right? Stockman

To: ed who wrote (50371)	3/10/1998 3:08:00 AM
From: Paul Engel	Read Replies (2) \| Respond to of 186894

Ed - Re: " So, INTEL has a lot to cut, and CPQ is right. If INTEL will not cut, then AMD and CYRX will cut for it. " Compaq should not concern themselves with Intel's profit margins - except for the fact that because Intel has great margins, they are capable of developing new technology, ramping that technology into production, and investing in new fabs to manufacture CPUs in the volume that Compaq needs. If Compaq's goal is to buy from AMD or Cyrix because they have extremely low margins, then Compaq will make sure that these companies are not viable as long term players in the semiconductor microprocessor business. Development and Expansion take money and money comes from profits. Take away the profits, and what do you have? You have AMD and Cyrix. Do you want your company's future success to depend on these two perennial losers? Paul