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Despite Taking a Beating, Intel Is Still Attractive


Advanced Micro Devices remains the ugly stepsister.

It's Friday and I am just itching for the weekend. On the agenda: my oldest daughter's soccer game, a family get-together, and plans to sleep in at least one day. Chances are I might hit Blockbuster (BBI) as well.

Asian stocks sank overnight. The Hang Seng and the Nikkei were off 0.83% and 0.54%, respectively. European stocks, however, were in positive territory early this morning. And here in the US we're currently trading lower.

Here's what I'm seeing this fine Friday morning:

Intel (INTC):
The chipmaker took a real pummeling yesterday and on some heavy volume. The Bank of America-Merrill news certainly didn't help the situation.

1. But I remain a bull. I still see some pretty solid earnings in 2010.

I'd much rather throw my chips in Intel's pot than Advanced Micro Devices's (AMD), which I think couldn't catch a cold much less Intel. And I still see strong demand for semis as I ponder the future. Semis are, and I may have said this before, to electronic knick knacks and gadgets what air is to human beings.

2. That said, I'm breathing a sigh of relief that in On Intel's News, AMD Bulls Could Be Fooled I said I'd rather dip my toe in on a dip.

Dell (DELL):
Mike's baby, as I affectionately like to call these guys (after Michael Dell of course), was out with its third-quarter numbers. Excluding items, it put up $0.23, and that's not too sharp because the estimate I'm seeing is $0.28. It missed on the revenue line, too.

Some thoughts:

The shares took a pummeling after the announcement in after-hours trading and I have to admit I think it deserved a slap for the performance. Still, this is one that I definitely want to keep my eyeballs glued to.

1. Why? Because in spite of the disappointment, I'm a believer and I still think there's ample room for the company to grow over the next several years, and I also think that lots of folks are unfortunately trading on emotion and bailing haphazardly right now.

Now, to be straight up, this isn't to say that I want to catch any rapidly falling shanks (as they always seem to call a knife in prison movies). But once the analysts issue their reports and the pundits get done trashing these guys, I think things will start to level out and there could be a nice opportunity.

2. All that said, I do think the beatings continue in today's session. After all, the company had previously been on a roll, thumping estimates, and so I sense there could be a lot of disappointed people out there.

3. I'll tell you what, I think a little insider buying (in the open market) right about now would go a long way toward easing some anxious minds. Michael, are you listening, how 'bout it?
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No positions in stocks mentioned.

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