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

To: Joe NYC who wrote (60283)	7/14/1998 10:42:00 PM
From: Darren	Respond to of 186894

If that's the case, you are undermining your own argument that Q3 and Q4 will in reality be better. No. The point is always to take the hit now, not later. If 3Q is still a problem, take it in 3Q, not move it over to 4Q and hope for an upside surprise. They are just setting their balance sheet up for an average to blowout quarter instead of trying to meet estimates this quarter and make everybody happy. In the CC, they clearly stated they got ahead of themselves. They were growing too fast. Now, they have spent two quarters making sure earnings will correspond into growth, and the stock is primed to see these results in the two best quarters of the year. The one thing that everybody is missing is Asia. INTC was unaffected by Asia, more or less. So why the problems? The Street says "margins, expenses, bad product, etc." INTC's reply is "we got ahead of ourselves. We slowed down expenses and now expect revenues to return to their pre-1998 rates." You could make a case for either side, but I think we will see the market react favorably to this report.