Eight Reasons Intel Is Best in Class
Management likely to offer an upbeat outlook.
1. First, the estimate for its fourth quarter is $0.30. My sense is that it will thump that number by a couple of cents. I also speculate that management will offer an upbeat outlook, or at least a more upbeat outlook about the future.
2. I admit that a little part of me wants to kick myself in the posterior over missing Advanced Micro Device's (AMD) rocket-like trajectory since last spring. But then there's another part of me that thinks it usually makes sense to stick with the best-in-class, and that's Intel (despite the flurry of emails I'm going to get, telling me how fast its chips are and that betting on David over Goliath makes more sense. But I love your passion, AMD bulls, so feel free to opine or vent).
3. Gross margins got a nice sequential goose in the third quarter, and my eyes will be on that line when it releases its fourth-quarter numbers. I'd like to see continued strength there. I'm also hoping that its research & development line comes in as expected.
4. If an institution has jingle in its jeans and wants to increase its exposure to the semiconductors in 2010, my bet is it will look at Intel before AMD.
5. Check out that dividend.
6. Some open-market insider activity on the buy side would sure scratch me where I itch right about now.
7. I see this company like a mad bull, scraping its hoof back and forth against the ground in rapid fashion just before it charges. It's future is super bright, and its earnings potential down the line is, too.
8. I see this as easily a $25 stock -- maybe $30 -- and feel that sooner or later the investment community will agree with me.
Hey, have a great day!
Minyanville's long/short portfolio, FlexFolio by Quint Tatro, is beating the S&P 500 by 24% since inception. Take a FREE 14 day trial and get portfolio access as well as email alerts before each trade.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter