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

To: Mary Cluney who wrote (61396)	7/29/1998 12:43:00 PM
From: John Koligman	Respond to of 186894

Mary, Good points on your part. It boils down to the same old arguments as to what it costs Coke to provide that sugar water vs. what it costs Intel to make the next generation MPU, along with the much higher risks in tech. You gotta agree, what is the R&D budget for a concern like Mars for M&M's? Yet, they sell every year, I love 'em, and how much competition do they really have... No wonder those guys are billionaires, (even if they are a bit off the wall).... John

To: Mary Cluney who wrote (61396)	7/29/1998 12:45:00 PM
From: craig crawford	Read Replies (1) \| Respond to of 186894

It's seems pretty clear to me. Do you see M$FT reporting earnings declines...ever? INTC has done it on several occasions just in the last year. Coke is sugar water. (pretty simple I agree), but that's why they don't take $475 million charges for faulty Pentiums. Coke's PE is too high, but at least it's earnings are in a stable trend that can be projected out a fair distance. INTC on the other hand goes through boom and bust periods, and due to the highly technical nature of their products, sometimes they falter. It's pretty hard to screw up sugar water. If the economy falters do you think that people are going to stop drinking Coke? Hardly. But they might not be inclined to upgrade to that new 450 Mhz Pentium II when their current 200 Mhz does the job well enough.