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Technology Stocks : CYRIX / NSM -- Ignore unavailable to you. Want to Upgrade?

To: FJB who wrote (27789)	7/2/1998 8:04:00 PM
From: Dale J.	Read Replies (2) \| Respond to of 33344

Bob, There's a market share land rush going on among the big five PC makers. Compaq's strategy took it to first place in retail and almost put Packard Bell out of business. This is good for CPQ, bad for PB. True. But CPQ shot themselves in the foot just to spite Intel. Intel's business model has been predicated on MPUs selling at ASPs well over $200 in order to have a revenue base which can sustain massive capital investments. How they will adjust to lower ASPs remains to be seen, and "you should keep your eyes open" to see how this addressed by the company -- Well I am keeping close watch of the situation. Believe it or not, I'm not here to antagonize you guys (that's just a side benefit) ;-). No, I am here to check out Intel's opposition, and it appears there is a consensus among you folks that Cyrix is here to stay. So far, Whitney, Mendocino, and lower capital spending are the responses I've heard from Intel. Mendocino/Whitney hurts ASPs. Lower capital spending lessens a competitive advantage. Intel's capital spending might be a little lower, but it still dwarfs the competitions spending. I'd avoid all x86 suppliers if at all possible. Well, there is some merit to that. But we've been in a bull market for the past several years so where do you see value (Drug stocks, MSFT, Dell, Coke etc. they had some nice run ups so you are now paying a hefty price. Yahoo, AOL, SEEK those are bubbles that are about to burst. AMD, NSM etc. well there is no earnings. Intel (all things considered) is possibly undervalued. We will know more in a couple weeks. The entire market is very high. NASDAQ is trading at 70 or 80 time earnings. Dale