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

To: nihil who wrote (66919)	10/17/1998 7:34:00 AM
From: Fred Fahmy	Read Replies (1) \| Respond to of 186894

nihil, Excellent post. <The key to their survival is their ability to create and manufacture competitive chips with superior price/performance to Intel.> Unfortunately, it's even more than just being able to "create and manufacture". Competitors need to create/design, manufacture, market, and sell. A point that I have stressed for years on these threads and which most AMD/Cyrix investors still don't understand (witness their constant use of benchmarks) is that there is a huge difference between making a product and selling it. Look at Betamax, OS/2, Macintosh, etc. It has been AMD's pricing/marketing strategy, more than their products, that has destroyed the company. AMD's engineering has been very respectable, especially given their limited resources. Unfortunately, they are battling a giant with nearly unlimited resources (i.e. very deep pockets) and have tried to take them head-on. This is not the correct strategy for the reasons you cited. Intel controls this game. It's very simple.... during good times or improving times (like Q3) Intel's competitors may make a little money and do better. At the same time Intel will kick serious butt. When things slow down or turn soft, Intel will make a few hundred million dollars less and Intel's competitors will continue losing money they can't afford to. FF

To: nihil who wrote (66919)	10/17/1998 9:59:00 PM
From: kash johal	Respond to of 186894

Nihil, An even more popular way to measure market performance is dividends. If a company pays dividends it must be more stable etc. Also lots of cash and stock buybacks help percieved performance. On these basis as well as the market value added you are absolutely correct that Intel is the winner. Buy more Intel and ye shall be amply rewarded. Rah Rah Rah. Kash

To: nihil who wrote (66919)	10/18/1998 2:48:00 AM
From: Aaron Cooperband	Respond to of 186894

Nihil - Re: "Stockholders had better understand the risk that Intel will continue to fight in the low cost segment rather than to permanently cede market share. Unless stockholders recognize the long-term value of dominance, and cheerfully accept less than stellar EPS growth in the next two or three years (i.e. no Dell or Cisco) they may be disappointed." Excellent explanation of Intel's competitive situation. Too bad the analysts and media don't understand this, or they'd be a bit more positive about Intel and its prospects. The key is to maintain dominance, and the narrow margins in the basic PC sector are the cost. Small price to pay, I believe. Aaron