Wednesday, November 02, 2005


Wow, Intel is up almost 2 and a half percent as I'm watching it now, something I wasnt expecting today. After their last last report they took a big hit in their stock price and anyone in above $23 was entering the "House of Pain", but for a tech company thats trading at bearly above a 1 PEG Ratio, a nifty little dividend, and continued factory expansion who shouldnt want this stock at anything under $23.

Their most recent news being the reopening of their Chandler facility, which is being renovated so that they can output more chips, that are more compact, which means lower production costs and more profits. This 2 Billion dollar investment has created more jobs as well, hiring new employees and training them tends to be a sign of growth.

Besides that Intel reports 8 times a year and gives guidance each time, this makes it hard to get an edge, but the last report wasnt bad, it was in line, and their stock took a hammering in sell offs for people expecting perfection as far as I can guess. The fact that no one can get a real edge on this stock doesnt make it a bad one, It means its a safe play, even with their bad management and constant pressure from AMD, they still mange to be the market leader, and although they might be losing some of the market share, they continue to have high margins, which hurts dell, not intel.

Conservatively I think this stock has a 3 dollar upside and a 1 dollar downside, but even if I were to raise my estimates I still dont see more than a dollar downside, this is a low risk safe play and I like it at $23.

I am not responsible for your trade decisions made or not made because of my opinion shared here. You should always do your own research before buying/selling a stock.


At 5:31 PM, Blogger Salbert said...

Intel has been in 'mon back mode since it's peak and will soon bottom.


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