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

To: Uncle Frank who wrote (70141)	12/23/1998 1:15:00 PM
From: Robert Douglas	Respond to of 186894

In celebration of Kurlak's capitulation and my Intel holdings becoming a 25 bagger, I will offer my 2 cents worth on what the future holds. First the negative, I recall another Kurlak capitulation a few years ago during the rapid accent in the price of MU. He was an excellent contrary indicator which I used to go short. This time, however, I am doing no such thing with my Intel holdings, as I believe $150 is “in the bag”. If we have seen the cyclical lows in margins then Intel is selling at a very low P/E. The only justification I could see for an industry leader like Intel selling at 29 times earnings is if those earnings were peak cycle earnings. More appropriate valuation, IMO, will be when INTC shares sell at 40 times Y2K earnings of about $5.00/share or $200. I am looking for this within 18 months. Ridiculous? Your thoughts? -Robert