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No. of Recommendations: 3
How do the underlying fundamentals of Intel, now heading towards that magical number of being a public company for 30 years, look in the first part of 2000? Let's zip over to the April 19th Rule Maker report on the first quarter's numbers for 2000:

http://www.fool.com/portfolios/rulemaker/2000/rulemaker000419.htm

•13% sales growth •63% gross margins •30.8% net margins •9x more cash than debt •.93 on the Richter scale for the Foolish Flow Ratio

Intel expects interest and 'other income' alone for Q2 to be $2.3 Billion. Revenues for Q1 were $7.99 Billion. I assume revenues will top $8 Billion for this quarter. AMD had $1.09 Billion in the previous quarter.




Points to be made on intel:
1. its falling behind in tech (maybe or maybe not it will reled with willamette, but for now its behind)
2. it has made critical mistake of underestimating demand, and let its opponent drive right in.
3. its core business is expected to be the dominant business even at the end of 5 yrs. The diversification is great, but won't be able to provide the growth needed if the core business should falter.
4. The interest and investment income is great, but they are really one time gains, and will not be looked upon by wall street as part of the core earning. Even it will make the PE look real good. Hence setting up for possible future disappointment. The gain of 300-500% on micron stock in 18 months is phenomenal, and i doubted they can repeat that feat. They have made some great investments, but dont expect them to be able to repeat it.
5. intels growth is very small yty (without the investment income).

The landscape has clearly changed for intel. Intel is a mature gorilla. Its trying to transform into a different gorilla (by diversifying), it may or may not be successful, but, look for some stormy landscape starting q4 2000.
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