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

To: Paul Engel who wrote (56527)	6/1/1998 1:22:00 PM
From: Maverick	Read Replies (3) \| Respond to of 186894

BT Alex. Brown & Cowen downgrade INTC, SS Barney, Lehman, Cowen cut estimates NEW YORK, June 1 (Reuters) - Shares of computer chip giant Intel Corp fell more than four percent in very heavy volume early Monday after the company warned of a delay in its next-generation processor, Merced. Shares in Intel fell as low as 68-1/8 in early activity, down 3-5/16 or 4.6 percent from their 71-7/16 Friday close. Intel issued the warning shortly after the close of trading on Friday. Several Wall Street analysts scurried to cut ratings and earnings estimates on Monday after news volume production of Merced would be delayed to mid-2000 from a 1999 target. Merced is not expected to provide a large portion of Intel's sales anytime soon, but the chip is considered to be an important part of the company's earnings outlook because of its expected rich profit margins. The absence of Merced, "makes the difference between a decent earnings story and a mediocre one in 1998," said Cowen & Co analyst Drew Peck. Peck, who lowered his rating on Intel to neutral from buy, said he expected the delay to cost Intel $0.25-0.26 a share in earnings in 1999. The company may be able to recapture some lost sales with its lower-end prducts, Peck said, but any replacement sales would not contribute the "rather extreme margins" he was expecting from Merced, which he said could sell for about $1,500 compared to production costs of about $100. Not all analysts saw the delay as a major cause for concern. Goldman Sachs analyst Joe Moore, for example, continued to recommend purchase of Intel. "The company had guided that Merced would be an immaterial amount of revenue in 1999," Moore said. "Even if they had hit the original schedule, I don't think they would have had any real revenue until fourth quarter 1999 anyway." Morgan Stanley reiterated a strong buy rating on Intel. But the full-fledged Intel bulls were in the minority. BT Alex. Brown cut its Intel rating to market perform from buy and analysts at Lehman Brothers and Salomon Smith Barney both cut earnings estimates on the company. Salomon Smith Barney analyst James Barlage said he lowered his 1999 estimate on Intel by $0.35, to $3.70 per share, while keeping a buy rating on the stock. Lehman maintained its rating on Intel, but the firm already had a relatively low neutral rating on the stock.

To: Paul Engel who wrote (56527)	6/1/1998 1:45:00 PM
From: JDN	Read Replies (1) \| Respond to of 186894

Dear Paul: But I am just sick and tired of buying and watching stocks drop after I buy. This time I want to get in on the bottom. I already have a position at 73 bought a long time ago and look now its below that. I want next acquistion to be cheap. JDN