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

To: GVTucker who wrote (67555)	10/29/1998 2:33:00 PM
From: Mary Cluney	Read Replies (2) \| Respond to of 186894

GVTucker,>>> Mary, Intel is at an historic HIGH PE, not a low PE. To what do you attribute the low Intel PE in the times before Kurlak lowered his rating last summer?<<< I feel, and I think Andy Grove has felt the same way, that Intel has never sold at a very high multiple when compared with the MSFT, CSCO, LU, DELL, SUNW, AMZN, YHOO, AOL and the hundreds of other high multiple issues. Besides, Intel, by most accounts, is arguably one of the greatest companies in business history. PE multiples, I am afraid, is more art than science. Much of it (although not all of it) is susceptible to good PR. As an example - When Roberto Guizueto was CEO at Coca Cola, he spent considerable effort monitoring analysts and their analysis. Whenever he was unhappy with their analysis, he would respond to them personally with a handwritten note. When things were more out of hand, he wrote to their bosses (or bosses boss). Intel's culture, on the other hand, was quite different in the way they guided analysts. As a result, highly ambitious, and ego driven analyst, out to make a name for themselves found Intel highly susceptible to their manipulations . Now, that Andy Grove has turned more day to day operations over to Craig Barrett, I hope he will do a better job at managing this part of the business - managing investor sentiment. Who is to say whether Intel should be selling at 25 or 35 times earnings. A lot of that has to be due to investor sentiment - and that is manipulatable - as Kurlak has so well demonstrated. Regards, Mary