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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (1421)	4/22/1999 11:48:00 PM
From: Bahama	Respond to of 54805

Hello Mike, I think it's a great move and their barriers to entry advantage due to using their own high-end server platforms and likely some products developed by their network products group adds even more. The initial capital-intensive period, although costly, will be lower than for anyone else who might enter since others would be paying street prices for that equipment. If their fab capacity is large enough so they aren't eating into the job-1 profits by taking otherwise high-margin parts that could be sold for those high margins, they're in fat city. One thing though, the analysts that follow INTC are more traditional valuation-focussed people. If this were a start-up this news would rocket the stock. I'm not sure this will have a big impact because I think they'll be judged by a more traditional "show me the money" approach, rather than the "show me the word 'internet'and a little bit of promise" approach. They absolutely needed a shot like this. They were missing the boat in many respects. Somehow they managed to find an area that is underdeveloped, undercovered, and absolutely necessary in the worldwide infrastructure--yet benefits from their current lines (so it's not such a stretch to believe they can execute this strategy). I'd expect an announcement for a partnership with a large infrastructure provider, since that would fit well with the strategy it would seem. They better watch out though, because C. Michael Armstrong (AT&T) might like the idea so much, he'll but the company <ggg> Funny thing, just today I was talking about unloading my INTC shares tomorrow. Think I'll continue to hold because I think this shows great promise for materializing into something very significant.

To: Mike Buckley who wrote (1421)	4/23/1999 12:39:00 AM
From: Uncle Frank	Read Replies (3) \| Respond to of 54805

>>Intel's new strategy I like it, Mike. Intc was a core position for a number of years, but I bailed out in January. Their business plan seemed to be to make faster and faster processors with manic zeal - kind of 1 dimensional. They have an incredible pool of talent at Intel; it's about time they came up with a new enabling technology patent base. Hmmm, if they are attacking network ic's, the next step could to enter the market themselves. Frank

To: Mike Buckley who wrote (1421)	4/23/1999 3:32:00 AM
From: LindyBill	Read Replies (1) \| Respond to of 54805

I can't wait to see what Lindy thinks of Intel's new strategy. I have read it so far with a "furrowed brow"! Who has the business now and how is it split up? Sounds like IBM's type of thing. My initial reaction is that I need a lot more input. I am sure they will be successful at it. I always thought the big market for them was to integrate a lot more features on their basic chip, in other words "hardwire the software." I still believe this is a huge market for them.