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

To: John Carragher who wrote (61320)	7/28/1998 12:32:00 PM
From: Tony Viola	Read Replies (2) \| Respond to of 186894

John, Re: " Did Gruntal give any projections for 12 months out." Here's the URL. Everything she says (I was wrong, Mona Eraiba, not Joseph Battapaglia made the call) sounds right out of the conference call on July 14th, or right out of this thread from those that know what's going on. biz.yahoo.com ===================================================================== Tuesday July 28, 9:48 am Eastern Time RESEARCH ALERT-Gruntal upgrades Intel NEW YORK, July 28 (Reuters) - Gruntal & Co analyst Mona Eraiba upgraded Intel Corp to a buy from a hold on Tuesday. -- Shares, which were not yet open, were indicated higher, at between 86-1/8 to 86-5/8. -- ''The worst is behind the company'', Eraiba said in a research note. She said Intel is ''escalating its drive to stimulate market demand for PCs as well as reclaiming its market share at the low-end.'' -- She said yesterday's round of price cuts on the Pentium II chip solidify Intel's aggressive attack on the market for personal computers (PCs) and are particularly aimed at those that sell for less that $1,000. The price cut was the fourth this year, she said, and at least two more are planned. -- Intel shares jumped in volatile early trading with the stock up about 1-4/16 to 87-5/16, although the price was rapidly changing. It was the most heavily traded stock on the Nasdaq in early trading. -- Intel plans to debut the new version of its low cost processor Celeron next month, ahead of schedule. The earlier version ''met with a lukewarm reception since its introduction and its performance were hampered by the lack of cache in the package,'' Eraiba said. She also noted Celeron prices were dropping below $100, which could help it attack the sub $1,000 PC market. -- She said she expects gross margins of 49 percent in the second quarter market the bottom. She also said Intel's yield and cost reductions are ahead of plan and the improvement will be more apparent as unit volume accelerates in the second half of 1998. -- She expects year-over-year and sequential revenue comparisons to turn positive in the third quarter and expects processor units to rise on a sequential basis after declining during the first half of 1998. -- Set a 12-month price target of $105, with a 28.3 times multiple to a 1999 earnings per share estimate of $3.70. ====================================================================== Tony