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

To: Patsy Collins who wrote (78535)	4/12/1999 9:32:00 AM
From: Paul Fiondella	Read Replies (3) \| Respond to of 186894

Have PC sales peaked or is CPQ unable to sell at the low end for profit? There are going to be plenty of people saying PC sales have peaked. How will they explain Intel's profits tomorrow? Did Intel sell its chips to Martians? Do they expect Intel to come out with a bad second quarter guidance? Do they expect GDP to suddenly go negative? Do they really think the answer to Y2K at the PC level will be to keep running those computers in Q4? Do they think that when students go back to school this Fall they will not buy new computers? Do they think that suddenly the first quarter after a booming blow out Christmas should show rising sales? Inventory is the biggest problem for manufacturers. When you don't manage your inventory properly as CPQ did then you suffer. Compound that by a flawed business model emphasizing low end low profit boxes, and channel stuffing with older AMD chips and you get CPQ results. CPQ's inventory problems are not Intel's. Robetson Stevens downgrade of INTC is based upon Celeron having good sales. Somehow it thinks this means the corporate sales are not good. With a new PIII this logic defies reason. Let's see whether INTC can prove them all wrong.