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On Intel's News, AMD Bulls Could Be Fooled


Advanced Micro Devices has a long way to go to top its number-one nemesis.

My wife rented The Taking of Pelham 123 last night and as a huge Denzel Washington fan, I was pumped to watch it. I'm not sure where I nodded off, but I woke up to see the ending credits rolling and my wife popping the DVD out. But it turns out she fell asleep too, and woke up only seconds before me. Guess we'll try again tonight.

Asian stocks ended lower. The Hang Seng and the Nikkei were off 0.13% and 0.63% respectively. European stocks were in negative territory early this morning, too. And here in the US, we're currently trading lower.

Here's what I'm seeing this morning:

Intel (INTC):
Guess who's breaking out the billfold?

The chip giant plans on bumping up the dividend it offers pretty significantly.

Some thoughts:

1. This news shows that investors are a top priority here. The company already kicks out a nice dividend and it could easily have kept its hands around that flash.

2. However, I'd prefer to dip my big toe in the water on weakness. That's because the shares have come a long way in a short period of time, in my opinion.

3. I'm starting to hear the Advanced Micro Devices (AMD) bulls rear their heads in light of the settlement news and the fact that the stock has bounced back and is trading near its 52-week high. But don't be fooled: I don't like the fits and starts AMD seems to have, and it has a long way to go to play on the same elevated level as its number-one nemesis, Intel. I also think its going to take a lot more to win over previously turned-off investors.

For my last take on Intel, click here.

Pacific Sunwear (PSUN):
The company was out with its third-quarter numbers and while they were better than expected, they weren't exactly hot.

1. In the period, it turned in a loss of $0.17, whereas analysts had been looking for a $0.20 loss. It beat on the top line, too.

But I think the real news is this line from the release: "Assuming a same-store sales percentage decline in the low twenties for the fourth quarter of fiscal 2009, the Company expects to report a loss of approximately $(0.28) to $(0.35) per share. This earnings range includes estimated non-cash store asset impairment charges of approximately $5 million."

2. I don't think too many folks will be high-fiving as the estimate I'm seeing for the fourth quarter is a loss of $0.11.

3. On top of that, with the stock looking like it will trade below $5, I'd bet it's going to have an issue getting attention from the Street.
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No positions in stocks mentioned.

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