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

To: Richard Nehrboss who wrote (51757)	3/31/1998 11:04:00 PM
From: Time Traveler	Respond to of 186894

Not April Fool yet!

To: Richard Nehrboss who wrote (51757)	4/1/1998 2:36:00 AM
From: FactBoy	Read Replies (2) \| Respond to of 186894

It shouldn't take more than 9 months for AMD stock price to pass INTC. Assuming that happens at $50 per share, Intel will still be valued at almost 10 times what AMD is valued at. Any rudimentary analysis should conclude that INTC is substantially overvalued even if there designs are 10% faster and 10% cheaper (which they are not). Once AMD turns on a UMC or LG as a foundry, the INTC CPU margins will plummet right past their "long term target" of 50% into the 30+% range. At that level of gross margin, the revenue multiple will be closer to 2X than the current 5X. Within a year, the INTC stock price should be right around $30 per share. Keep in mind that even at $30 per share, the market cap is huge - $30Billion - not anywhere near going out of business. AMD market cap is still under $5B. We could see a 3-5X run up. Additionally, by using external fabs, AMD could end up with the more attractive business model.

To: Richard Nehrboss who wrote (51757)	4/1/1998 3:01:00 AM
From: Tony Viola	Read Replies (1) \| Respond to of 186894

Rich, Rich. Rich, Rich, Re: "With an investment like this, from a company like IBM, AMD is sure to take a bite out of Intel, possibly even toppling them," analyst Tom Kurlack said of the deal." This freaking article can't even spell K U R L A K's NAME right and we have to see it in here? AMD might topple Intel? Oh yeah right, like Albania, or Ethiopa might topple the USA!!!!!!!!!!!!!!! GET REAL!!!!!!!!!!!!!!!!!!!!!!! If this is really a quote from K U R L A K, he has totally gone off the deep end. Why doesn't Merril Lynch put him out to pasture, or out of his ***** misery. I put some posts in here recently about semiconductor reliability, which I've always had to be very sensitive to all of my career, and in which field I've had the privilege of working with the two or three top specialists in the field. To make a long story short, you don't purchase chips of any sort from a company which is experiencing yield problems currently, or in the recent past. That would include AMD right now. YOU SHOULD NOT PURCHASE AN AMD CHIP FOR AT LEAST ONE YEAR AFTER IT APPEARS THAT THEY HAVE CLEARED UP A YIELD PROBLEM.**. That is the rule of thumb in the computer industry, although, if you have a vendor that never has a problem (guess who?), you never switch, ala the most successful PC company right now, Dell.