Despite Taking a Beating, Intel Is Still Attractive
Advanced Micro Devices remains the ugly stepsister.
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:
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.
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.
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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