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

To: Yousef who wrote (68735)	11/19/1998 7:53:00 AM
From: KM	Read Replies (3) \| Respond to of 186894

Great bull piece about why you can still buy Intel, even here (early holiday gift for Paul F., Fuchi, Albert, et al): Wrong! Rear Echelon Revelations: How Far Can Intel Go? By James J. Cramer 11/19/98 7:31 AM ET How far can Intel (INTC:Nasdaq) go? Everywhere on Wall Street you hear that question. The stock has doubled, isn't it time to get out? How much more can there be left in the stock? Isn't it prudent to get out now? Should I take something off the table? All I know is that about four years ago I was faced with the same set of questions about this stock. I wrote a column in SmartMoney, when I used to write for the monthly, that said perhaps the more important question is not whether you should sell, but whether you should double down. I answered in the affirmative. I'd give you the same answer now. I sit at my desk each day and hope that it sells off. I pray for a downgrade. I keep thinking some analyst will lower his forecast instead of raising it. I fantasize for a negative Heard on the Street article to let me buy more cheaper. But we aren't going to get one. Because Intel is in the sweet spot. Every four or five years it's like this. A confluence of high yields (they don't have to throw away any chips because they aren't up to specs), strong demand and no serious competition on the high lucrative end let Intel's earnings explode. And the stock just doesn't know how to quit. Or, as I used to say when I was trading with my wife: "Intel's galloping, and it won't stop until it gets where it has to go." How does it happen that the planets align so perfectly? On an elemental level, it is simple supply and demand. There are times when Intel, running flat out, can't make enough microprocessors to satisfy its clients. This is one of those times. What is truly amazing about this time, however, is that it is occurring during a period of suppressed worldwide demand for virtually everything else. Even more stupendous is that, with the exception of Japan, Intel is seeing an increase in every country's demand for processors in the world. There's that thesis of mine again -- they cut back on deodorant and toothpaste, but not PCs. China, Thailand and even Indonesia, which can't afford to feed its millions, are showing strong sequential demand. We can search for reasons why demand is so strong. Replacement of old personal computers. A need to beat the year 2000 problem. The Net. Christmas season channel-filling. None of these is going to explode in your face in the foreseeable future. Which means that Intel isn't done galloping just yet. Ironically, to resort to Yogi Bera-isms, it won't be over until it is over. In other words, we won't know when the world will be filled with Pentium II processors and demand will be sated. When it is, the stock will go lower, no doubt. It is the "until then" that I think will last longer than expected. Which is why I'd rather double down then sell Intel at 110 per share.

To: Yousef who wrote (68735)	11/19/1998 9:30:00 AM
From: greenspirit	Respond to of 186894

Yosef, Article...IBM Joins Unix Crossover... November 19, 1998 VARBUSINESS : The last major computer manufacturer is on board to develop a Unix platform for Intel Corp.'s long-awaited 64-bit microprocessor. In an announcement on Oct. 26 that didn't elicit too much excitement from analysts, IBM Corp. said it has partnered with The Santa Cruz Operation Inc. (SCO), Santa Cruz, Calif., and Sequent Computer Systems Inc., Beaverton, Ore., to develop a Unix platform that will run on Intel's IA-64 processor, now due out in 2000. The platform will also run on IBM's Power PC chip. IBM was the last major computer maker, behind Sun Microsystems Inc., Hewlett-Packard Co. and Compaq Computer Corp. to declare an effort to ready itself for Intel's new processor. The announcement "seems low-drama," says Rob Enderle, director of desktop and mobile technologies for researcher Giga Information Group, Santa Clara, Calif. "The word Unix and alliance have been mutually exclusive. " Alliances similar to the one struck by IBM, SCO and Sequent have fallen apart in the past, he says. It just adds another Unix flavor to the many already available on the Unix platform. "What they need is an alliance among the major players," Enderle says. "Any one of them not participating is a problem." The three partnered firms aim to use the technology of SCO's UnixWare, used by small and midsize businesses, and that of Sequent's PTX operating system. The aligned companies hope that when Intel's new microprocessor hits the market, high sales volume will follow, because SCO's UnixWare is a market share leader equipped with Intel processors, says Jonathan Eunice, analyst and information technology advisor at Illuminata Inc., Nashua, N.H. "What everyone is waiting for is Intel's 64-bit processor," Eunice says. Of the partnership, he says the worst that could come of it is that it "doesn't go anywhere." But analyst Todd Chipman, also of Giga Information Group, says with HP and Sun already working to integrate Intel's upcoming processor, Monday's deal will level the playing field.