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

To: Paul Engel who wrote (68915)	11/20/1998 7:15:00 PM
From: puborectalis	Respond to of 186894

Paul and others: Here are the lowlights fromTK's report on Intel this week.INVESTMENT HIGHLIGHTS=Cautiously more optimistic on 1999...Cost reductions helping margins in Q4....Our 1999 $3.60 estimate may be conservative.FUNDAMENTAL HIGHLIGHTS=Macroeconomic trends key to end demand in 1999....Two better sales quarter not a trend but worst is probably over in Asia/Pacific...Can stringer sales continue after seasonal increase in Q4?...Intel's growth now more dependent on unit growth and cost reductions than when unit pricing was rising.PROCEED WITH CAUTION=we are less concerned about the risk of a sharp decline in Intel's stock price because of a better gross margin trend that could result from cost reductions...Y2k PC purchases in 1999 is hard to determine but could help in early 1999 and hurt later....ASP's still falling.COST REDUCTION STEPS=More equipment reuse and lower capital spending is possible until wafer sizes increase to 12 inches.Then new equipment is needed and capital costs will rise.We look for 12 inch pdtn to start at Intel's new Texas fab in 2001.