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

To: Mary Cluney who wrote (51476)	3/28/1998 12:11:00 AM
From: Sonny McWilliams	Respond to of 186894

Mary. My apology. Tony does not need that wine now. He finally got his answer. ggg. I know you asked Tony what he thought but since I was following this dialog I give it a shot also. Not a bad summary. I will mark May 1999 on my calender. ;) I hope it's conservative. Sonny

To: Mary Cluney who wrote (51476)	3/28/1998 12:56:00 AM
From: TTOSBT	Read Replies (2) \| Respond to of 186894

Mar_ry! Mar_ry! Mar_ry, You make me wanna sit in the stands and cheer. DiMaggio and Williams are who I heard about, Mantle and Yastremski were who I saw and if Barrett is a Mantle (without the weak legs) we will not only see what Mantle was, but also what he could have been. Re: "He will turn in earnings of $5 per share and Wall Street will reward him with a PE of 25." That is were my gut feeling comes in. Intel should command a PE of 25-30 when Compaq, IBM and HWP become what Dell is i.e. the channel. This will probably help Intel (along with Windows98). I dont think Intel's market share was hurt by competition as much as by it's business partners. I.E. It's competition having a superior product. I think Compaq, IBM and HWP were sore at what Intel does for Dell in the way of pricing. I may not know what I'm talking about here but it's snidbits of what I read here and there that gives me those impressions. Along with the feeling that TV'S, cars, phones, a good home and now the PC is what Americans desire. And the more bells and whistles that are thrown at us the more we like it. The newest latest and greatest is still with us and Intel knows this. Thanks for this opportunity TTOSBT

To: Mary Cluney who wrote (51476)	3/28/1998 3:47:00 AM
From: Tony Viola	Respond to of 186894

Mary, >>>Given the current gloomy outlook - increased competition - lower ASP - and uncertain demand situation - and given the Intel road map laid out for the CEO, there is no one that I would want in the CEO position, at this time, than Craig Barrett.<<< Mary, Mary, Mary...Bravo! Bravissimo! You appear to have made a decision on Barrett's being the right CEO, or not, at this critical juncture for Intel, and Intel stockholders. We thank you, and now we can all breathe easier. I will even tell my Mom I want to decide when I should change clothes from now on. Sheesh, yourself! Baseball analogy-wise, I think Barrett could not ever be compared with the great Mick, nor with Bobby Murcer. Mickey Mantle's father and grandfather died in their forties, each from a cancer related illness. Consequently, Mickey figured his days were numbered from the start, so, why not live the tawdry life outside of the white lines. As it turned out, when he got to be fifty or so, he said "if I knew I was goin' to live this long, I would have taken better care of myself." Poor Mick was an imbiber and Murcer was a little better than average performer in what he did, none of which will be said of Barrett. Barrett seems to be a stoic, hands-on, lead by example rather than by hoopla/ra ra/cheerleading (not that Intel has EVER had a CEO like that), horse riding, mountain climbing, camping out in the snow by himself kind of guy. Why does this matter? I don't know, but his toughness, along with his academic preparation, and Stanford professorship, and growth and leadership experience so far at Intel, make me also conclude that he is the most suited for the job. SJMN (San Jose Mercury News) articles today, for once, were all positive about Intel's moves and high tech. They are usually anti-high tech and pro equal employment opportunity and affirmative action, to the extreme. I am for EEO and AA, but they, like a lot of California, go too far. I digress. OK, Mary, we can close this out, right? It's get behind Craig and march all the way to war, right? Actually, the war between Intel and it's competitors is going to be like if the USA declared war against the Balkan States, or something like that. Sonny, if you're reading, too late, already uncorked the vino! Tony

To: Mary Cluney who wrote (51476)	3/28/1998 8:20:00 AM
From: gnuman	Read Replies (2) \| Respond to of 186894

Mary, that's an amazing WAG. (Notice I didn't say SWAG). You're predicting a $100 increase in ASP when ASP's are coming down. (I believe Intel's last reported ASP on CPU's was about $250). Be interesting to hear what changes in the market you see that will fuel this increase.

To: Mary Cluney who wrote (51476)	3/28/1998 1:31:00 PM
From: FJB	Read Replies (1) \| Respond to of 186894

RE:I am going to bet that Intel stock will be at 125 one full year after Craig Barrett takes over ... I'm predicting that he will maintain virtually 100% of the high end PC market with an ASP of $450 on fifty five million units Have you done the math there? Not a realistic prediction. Also, have you figured out why Microsoft has a much higher P/E yet? Bob

To: Mary Cluney who wrote (51476)	3/29/1998 8:48:00 PM
From: Ibexx	Read Replies (3) \| Respond to of 186894

Mary, If you had been worried about people with technical background becoming senior managers, the following article ought to ease your fears: _____ Sunday March 29, 12:16 pm Eastern Time Intel shares rise again on optimism about Barrett By Kourosh Karimkhany PALO ALTO, Calif., March 29 (Reuters) - Craig Barrett, who is replacing Silicon Valley legend Andrew Grove as Intel Corp.'s chief executive, is seen as just the man to get the world's largest computer chip company growing again. Intel said on Thursday that it would promote Barrett, its current chief operating officer, to CEO in May. Grove will remain chairman and set long-term strategy for the company. Analysts said investors approve the management change because Barrett has much more experience in operations. At this stage in Intel's history, the company needs a chief who can cut costs aggressively to cope with collapsing prices of personal computers and chips. ''The fundamental issue is that the average selling price of a microprocessor is in free fall right now,'' said Drew Peck, analyst at Cowen & Co. ''If they can't prevent prices from going down, then they have to address costs. That means becoming a much better manufacturer.'' That's why Intel turned to Barrett, Peck said. Long a behind-the-scenes man, Barrett has built a reputation as a manager with a talent for figuring out how to run a huge operation most efficiently. The 58-year-old former Stanford University professor also gets much of the credit for Intel's focus on building its manufacturing capacity in the 1990s. Even though Grove, 61, consistently ranks as one of the most visionary CEOs ever, Intel needs more of Barrett's opertional skills these days, analysts said. The company, which is based in Santa Clara, Calif., seems to have been surprised by several threats in the past year. PC prices are collapsing, falling from about $2,000 to $1,000 or less. That's forcing Intel to slash its own chip prices more deeply than it would like. That also is part of the reason why Wall Street now expects Intel to report a drop in earnings in 1998, the first yearly drop in a decade. ''The transition is driven by the fact that this company is going to have to focus its resources on becoming a bigger and more efficient manufacturer,'' Peck said. Intel also has been slow to recognize the growing popularity of new types of computers that don't need Intel Pentium chips -- such as handheld computers, consumer electronics, souped-up cable television boxes and digital television sets. ''Intel and Barrett might want to take a look at Microsoft's book,'' said Rob Chaplinsky, a Hambrecht & Quist semiconductor analyst who used to work at Intel. Microsoft Corp. [Nasdaq:MSFT - news], faced with a slowdown in software sales, has aggressively expanded into other areas through its investment in cable television, the acquisition of Internet set-top box maker WebTV Networks Inc. and its push into toys and car navigation devices. Intel will have to do something similar to wean itself from PCs, Chaplinsky said. To be sure, some industry executives said Intel's stall is only temporary. Its upcoming microprocessors will allow companies like Compaq Computer Corp. [NYSE:CPQ - news] to make high-end computers with computing horsepower to rival the brawniest mainframes. ''Craig is an experienced manager, but more importantly he's a technologist,'' said Casey Powell, the chief executive of computer maker Sequent Computer Systems Inc. and a former top Intel executive. ''You need a technologist for this job.'' Still, other executives said Intel's old formula of introducing a faster chip each year will not work much longer. Grove said on Thursday his job will be to figure out how Intel can make more money in new markets. Barrett will be in charge of making Intel leaner. Intel stock rose for a second day Friday, gaining 69 cents to $78.88 on Nasdaq trading of 18.2 million shares, the most active issue. On Thursday when the company announced the change, the stock jumped $2.13 to $78.19. ________ Trust me, dear Mary, a technically trained person in general makes a better CEO for a high tech company than a sales person or an accountant would--not being chauvinistic here either. Ibexx