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

To: Diamond Jim who wrote (55635)	5/15/1998 6:18:00 PM
From: kolo55	Read Replies (2) \| Respond to of 186894

I sold last of my Intel shares and warrants last September... and my AMD soon after. I think the whole sector will get hammered. If I'm right, Intel will drop over 25% over the next two years. This is not a compelling short sale investment return. I have better investments than that in my portfolio. Someone on the thread says that Intel trades at a discount to the market PE. Well, there is good reason for it. Intel hands out generous stock options. According to recent Forbes article, which I am sure has been discussed here, the cost of these options, if purchased on the open market, would have wiped out all of Intel's $5B of earnings last year. Now why should anyone pay a huge real PE for a company whose revenues will be flat and margins and earnings decrease over the next several years ? Paul