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

To: Mary Cluney who wrote (51142)	3/24/1998 11:07:00 PM
From: TTOSBT	Respond to of 186894

Mary, thanks. It's always assuring when I see your answer is in the positive. TTOSBT

To: Mary Cluney who wrote (51142)	3/24/1998 11:28:00 PM
From: Fred Fahmy	Respond to of 186894

Mary, <Intel is so afraid of getting into lower margin businesses, they limit their ability to grow revenues in a meaningful way.> I don't think this is true. I just think they aren't going to jump into new businesses before they are ready. They have continued to stress in their policy statements (including their annual reports) that their long term strategy is to grow absolute margin dollars (at the expense of lower margin percentages). They know that they need to pursue alternative businesses that will likely come at a much lower margin than their traditional CPU business. That is why they were guiding analysts downward on margin percentages as far back as two years ago. Now....one can argue whether or not they are moving in this direction fast enough...but personally I would rather see prudent well thought out strategic decisions than quick fixes to make one or two quarters look good. This management has an excellent track record of shifting with the times...otherwise they would have become a bankrupt memory manufacturer a long time ago. I agree that a meaningful acquisition would be nice and although rather small, I think the CHPS acquisition will pay off in the future. During times like this it is very easy to become impatient. Some of the things that will really help INTC are simply not ready for the market yet. The widespread use of video and voice recognition are two such segments. If there is one thing I have learned about the market, it is that patience truly is a virtue. Good luck, FF