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To: X Y Zebra who wrote (6670)	3/9/1999 11:39:00 PM
From: Shafik Habal	Read Replies (1) \| Respond to of 12617

My pleasure Juan. I enjoy an intelligent discussion. The following may be of interest to you: Tech Stock Update Tech Reversal Spurred by Rumor of Intel's Trouble By Medora Lee Staff Reporter 3/9/99 6:25 PM ET URL: thestreet.com SAN FRANCISCO - Afternoon rumors that chip giant Intel (INTC:Nasdaq) might miss first-quarter estimates weighed on Intel stock and the whole tech-laden Nasdaq, traders say. Given last week's downgrades from NationsBanc Montgomery Securities and Donaldson Lufkin Jenrette, speculation that the chipmaker's quarter might be light is nothing new, but the fresh talk that surfaced on Tuesday afternoon still pulled down Intel shares. A trader said Tuesday that Intel asked its sales force to collect as many orders as possible by Thursday. The implication is that Intel sales are light this quarter, and might not meet expectations. The company declined to comment. "All tech basically reversed" when the rumor hit, the trader said. Indeed, Dell (DELL:Nasdaq), Microsoft (MSFT:Nasdaq), Compaq (CPQ:NYSE) and Intel all started slipping south around midsession. But not all analysts bought the rumor. "If they were going to miss the quarter, they would have preannounced last week," says David Wu, analyst at ABN-Amro. He says last week would have been the final chance for the chipmaker to preannounce. Wu remains optimistic that Intel will "deliver a respectable year and a respectable quarter," and estimates Intel will earn $1.18 per share in the first quarter. That is higher than First Call's consensus of $1.10 a share. Another analyst notes that, even if the rumors are true and Intel is concerned about the quarter, it is important to discern whether the company is nervous about meeting its own estimates or meeting Wall Street's estimates. He says Intel has guided analysts to expect a flat to slightly lower quarter, but that Wall Street may have gotten ahead of itself and modeled Intel too high. In addition, Briefing.com reported that Goldman Sachs put a technical sell on Intel. This is not a ratings change, only a sell order based on Intel's technical outlook. Jitters in the chip market were highlighted late Monday when Advanced Micro Devices (AMD:NYSE) warned it would report a significant loss in the first quarter and cut 300 jobs over the next two quarters. But, "just because AMD lost money, doesn't mean that Intel can't make money," Wu says. Intel shares ended down 4 1/4, or 3.6%, at 115 5/16, while AMD finished down 1 7/8, or 7.6%, at 17 1/2. Juan, the rest of the article discussed SAP, LCOS and CMGI so its not relevant to this topic and i deleted it.