Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Ibexx who wrote (64031)	9/6/1998 1:53:00 AM
From: lanac	Read Replies (2) \| Respond to of 186894

from a interview with 2 managers in BARRONS this week about INTC Fleckenstein: Intel is another example of this disconnect between fundamentals and market valuation. Intel reported earnings of 69 cents a share last quarter. The last time their earnings were in the 60s was the second quarter of 1996. They just reported their second consecutive quarter of down year-over-year revenues in probably about 10 years. Yet the stock sells at six times revenues. Anyone can see that Intel has virtually no market share in the sub-$1,000 retail PC market, one of the fastest-growing areas. All the key insiders are selling stock in a very chunky fashion -- many making their first sales in years. They started missing numbers in June of '97, so their mispositioning and overcapacity relative to the processor market was already happening before Asia went into the tank. Yet before this market started to crack about 10 sessions ago, this thing was back up to 92, barely 10% off its all-time high. That shows you the difference between getting the fundamentals right and dealing with Wall Street's cheerleaders. Hickey: It's even worse. Intel in the last quarter saw gross margins fall 12 points, year-over-year. Any other company in any other industry wouldn't have seen its stock rise. Intel's unit sales were estimated to be down by a couple of hundred thousand, year-over-year, in that quarter, while Advanced Micro Devices were up by a million -- Intel lost four percentage points of market share in the period. Yet the stock is up on the year. It's hard to believe.