.... Analysts are cutting their estimates for intel now and predicting that intel will only make about 90c/share profits for all of 2001. Applying even an optimistic P/E ratio of 20 (for a little or no growth company) suggests a proper price of about $18, maybe a $15-20 range, for intel's stock now.
Further hurting intel is analysts saying the PIV rampup to replace PIIIs will be forced by expensive promotions and cutting PIII production rather than being driven by actual consumer demand.
Will things improve for Intel in 2002? It doesn't look that way to me. Not only does Intel need to change the way it does business (giving consumers what they want and stop trying to dictate every facet of the PC industry), it also has to contend with AMD who will be unleashing some very kick-ass 64-bit processors along with Hypertransport in the not-to-distant future. Intel needs to change and the sooner the company realizes it the faster they can get on the road to recovery.
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