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

To: Mary Cluney who wrote (50905)	3/21/1998 12:01:00 PM
From: TTOSBT	Read Replies (1) \| Respond to of 186894

Mary Re: "Kurlak has almost single handedly (or at least more responsible than anyone else) kept INTC valuation at an absurd level. Compare INTC PE at 19.98 versus Coke (KO) at 45.69, Gillete (G) at 46.89, and AOL at 513.54." Well then perhaps Kurlak also deserves the credit for single handedly creating the best investment possibility, a) If he's wrong and b) If the investment community would only give INTC PE parity - preferably with AOL! TTOSBT

To: Mary Cluney who wrote (50905)	3/21/1998 12:42:00 PM
From: Night Trader	Read Replies (2) \| Respond to of 186894

Mary, Valuation is not just a matter of comparing PEs; you have to look at earnings dependability as well. Gillette and Coca Cola have earned their high valuation with the steadiness of their income stream. Intel has a lower PE because rightly or wrongly it is still seen as vulnerable to shifts in technology. A price/ sales multiple of 5 means high margins and high margins unless you're an absolute monopoly like Microsoft means pressure from competitors and customers. As to AOl, that's not investing; that's just speculation.