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

To: billwot who wrote (62855)	8/20/1998 9:02:00 AM
From: yousef hashmi	Read Replies (1) \| Respond to of 186894

1 08:49 T Merrill Cuts Intel To Long-Term Neutral From Accumulate 2 08:48 T Merrill Still Rates Texas Instruments Near-Term Neutral 3 08:48 T Merrill Had Rated Texas Instruments Long-Term Buy >TXN 4 08:48 T Merrill Cuts Texas Instruments To Long-Term Accumulate >TXN

To: billwot who wrote (62855)	8/20/1998 10:48:00 AM
From: mp	Read Replies (3) \| Respond to of 186894

Kurlak has become Ken Starr for Intel. Neither of them have nothing better to do than pursuing a vengeful, single-minded path. I think this time Kurlak may be kicked on the face by Intel, since there might be other factors at work for Intel that Kurlak has missed to include in his biased analysis. One would think an analyst would throw in the towel after having been so wrong in the recent past. Someone who took his advice two months ago that Intel is headed for 60 missed a 26 point upturn (from 66 to 92)! It is becoming expensive to take this "guru"'s advice. But Kurlak also seems to have a thick skin!

To: billwot who wrote (62855)	8/20/1998 11:43:00 AM
From: Tony Viola	Respond to of 186894

Hi Bill, part of what Kurlak said: 'Says that though there is a shortage of low-end chips...' I guess he hasn't heard about what's coming out Monday (Mendocino, AKA Celeron A). Can't this clown wait two working days? San Jose Mercury news article today about Mendocino: mercurycenter.com Posted at 12:12 a.m. PDT Thursday, August 20, 1998 Intel to update key chip BY K. OANH HA Mercury News Staff Writer Intel Corp. is releasing a revamped line of Celeron microprocessors Monday, fueling speculation that the improvements will help the chip giant regain its footing in the fast-growing market for computers selling under $1,000. The new line represents Intel's full-fledged stab at the budget PC segment, where the chip-making giant has lost market share to other low-priced competitors. Top-tier computer makers including Hewlett-Packard Co., Compaq Computer Corp. and IBM -- which have relied on Intel competitors such as Advanced Micro Devices Inc. for the processors that serve as the brains of their budget PCs -- are slated to put the chips into consumer and business computers. Intel will unveil the new design running at two clock speeds Monday, a 300- and 333-megahertz version. The chips will cost $139 and $179 respectively, said Piper Jaffray analyst Ashok Kumar. Intel will also launch a 450-megahertz Pentium II the same day. HP plans to incorporate the new chips into its business computers in the Brio and Vectra lines starting at under $1,000 while Dell Computer Corp. will use them to power its OptiPlex business models and its consumer line, Dimension. ''The first Celeron processor was a dog,'' said Nathan Brookwood, an analyst at San Jose research firm Dataquest Inc. ''It wasn't worth the money. This one is.'' Intel launched the Celeron line in April but the first processor drew sneers from critics because the chipmaker removed a secondary memory chip to cut costs, compromising performance. The new Celerons, developed under the code name of Mendocino but to be sold as the Celeron-A, will contain the extra memory chip, otherwise known as integrated cache memory, which allows speedier operation. Intel sell both Celeron models initially, but will phase out the older version after the Celeron-A takes hold, analysts predicted. The Celeron-A ''will give the Celeron line the kind of performance it should have had from the beginning,'' said Keith Diefendorff, editor of Microprocessor Report in Sunnyvale. Intel's miscalculation of the popularity of budget PCs helped widen the door for competitors such as Sunnyvale-based AMD. Intel's market share in the sub-$1,000 market nose-dived to 35 percent in June from 72 percent a year ago while AMD sprinted ahead to grab a 51 percent share, according to research firm PC Data. The budget PC arena, one of the fastest-growing segments of the computer market, accounts for roughly 10 percent of all computer sales. With the release of Celeron-A, many analysts think Intel has a chance to pounce back. Consumers are getting a good deal with Mendocino, said Brookwood. The chip's performance is very comparable to Intel's 333-MHz Pentium II, which sold for nearly $800 early this year. ''The Mendocino is impressive,'' Brookwood said. ''Intel's still late but they have time to catch the main attraction and most of the party.'' The only potential obstacle to the Celeron line's success is possibly the now-tainted name itself, several analysts pointed out. ''The first Celeron system wasn't good at all -- and that's putting it mildly,'' said Matt Sargent, analyst with ZD Market Intelligence. ''People have negative feelings about the Celeron. It'll take some trust for them to go with the line.'' Several analysts suggested it might have been better if Intel renamed the line altogether. Intel executives declined to discuss the new chip Wednesday, but in earlier conversations, said they're committed to the budget PC segment and plan to further develop the Celeron line. The budget PC market is ''a segment where we want to deliver product, price and value,'' said Mike Aymar, Intel's vice-president and general manager of product launch operations. ''We want to earn the customers' choice.''

To: billwot who wrote (62855)	8/20/1998 11:16:00 PM
From: Silc	Read Replies (1) \| Respond to of 186894

What Mr. Kurlack is really saying is that he expects the growth rate to decline to about 9% per year over the next 5 years. The stock is trading at a pretty high multiple for that type of growth so it is vulnerable. He believes that PC prices will continue to decline over the next 5 years and eventually end up at around $200 - $300. With those types of prices Intel can only get about $30 for chip, not $300. The business model is changing from what it was in the 80's and 90's. The Internet also reduces the need for additional power in desktop PC's. Merced can not ramp up fast enough or in enough volumen to offset the collapse in PC pricing. I think owners of Dell should be worried about this trend also.