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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: Axel Gunderson who wrote (556)	7/28/1998 12:03:00 PM
From: Berney	Respond to of 1722

Axel, INTC always scores well in my FA system. I'm tracking the 85 stocks on our exchanges, which in April or May, had a market cap of more than $40B, or are in the DJIA. These 85 companies account for 40% of the equity on our exchanges. I have about 7,500 stocks in my software. Of these, 4,310 had a 5 year stock performance record. Over the 5 years the Index went up about 22% annually, the universe of 4,310 went up a "paltry" 12%, and the 85 Big Boyz went up 30% annually. In fact, 26% of the 4,310 were negative for 5 year performance (ouch!). Clearly, when you look at the Big Boyz on a long-term monthly chart, they have gone parabolic, and IMHO there are few values out there; but they do exist. Again, a perfect score in my FA system is 13. Here's a list (as of last Friday) of those with a FA score of "6" or better: INTC -- 11 CAT -- 8 GM -- 7 MMM -- 6 UTX -- 6 ALD -- 6 That's all Folks! So, INTC dramatically stands out in a great group of companies. Last year, I projected a one-year price target of $120. Clearly, in the last few months Mr. Market did not care what a great score the company got in my FA system. We'll see what the future brings. Short term, I see the bottom of the long-term (2 1/2 year) trading channel at $77. Clearly, it just shattered a down trend line at $85. However, I would be increasingly concerned at any prices above $92. BWDIK and all other disclaimers. Berney

To: Axel Gunderson who wrote (556)	7/28/1998 4:03:00 PM
From: Jacques Newey	Read Replies (2) \| Respond to of 1722

Axel, Re: "Phil Fisher and Intel" ...hope you don't mind if I jump in here. Having read "Common Stocks and Uncommon Profits" (three or four times), I have come to the conclusion that Intel certainly qualifies as a great investment by the standards that Phil set forth in his book. When comparing Intel to Fisher's "fifteen points to look for in a common stock", I have to believe he would have invested heavily in the company had it been around at the time of writing the book. Great book by the way. My conclusion is that Fisher's ideas are a superb refinement to the earlier works of Ben Graham, particularly in light of the "new era" of technology and the information age. I know Buffet wouldn't touch Intel because he wouldn't understand it. However, Phil does get a kind word or two from Warren as to his ideas and techniques. What are your thoughts? Very long on Intel.