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Technology Stocks : Intel Strategy for Achieving Wealth and Off Topic -- Ignore unavailable to you. Want to Upgrade?

To: puborectalis who wrote (20348)	7/29/1998 12:23:00 PM
From: Sonki	Respond to of 27012

In a brief research note, Kurlak said risks of earnings disappointments in the third quarter are on the rise. He said the recent rally in the chip sector has been narrow, focused only in a few selected shares, and is not sustainable. Intel Corp. (INTC - news), one of the world's top chipmakers, has seen its shares rally nearly 30 percent since June, from 66 to today's price of 85. In the same time period, the broader chip index (^SOXX - news) meanwhile rallied only about 8 percent. The June/July rally come after a nearly year-long slump for the chip sector from its August 1997 highs. Since then the market has been mostly moving lower, with the exception of a brief rally in the first quarter of 1998 that later unraveled. Kurlak said that investors should guard against chasing this recent rally because of a lack of fundamental support. He said there is still a glut of chips on the market and demand has not yet shown a strong enough gain. ''Fundamental upturn not imminent -- too much supply, final demand not good,'' he said.