DLai0001 (< 20)

Tis the season for Intel

December 05, 2008 – Comments (0) | RELATED TICKERS: INTC , AMD

Intel finally has a trailing PE under 10.  Which makes it appear slightly more profitable to buy on margin than the margin interest incurred @ my brokerage acccount.  But really, once new numbers comes out, I'll probably be expecting something along the lines of 17.  This is applying AMD's recent revised guidance as if it were to affect Intel.

 But I see Intel as a good moderate growth stock, easily worth a Forward PE of 20.  You're looking at a company that has a good balance sheet, a slightly positive income statement, and a moderate dividend yield.  I expect dividends to be cut, and that cash channeled into stock buy back.  From a paper perspective, buying back the stock while it's yield is very high is an excellent way of adding share holder value.  With AMD drifting out of the picture, it's looking like Intel is set to be the undisputed king of desktop, laptop, and soon to be king of mobile processors.

 I've just bought myself a few shares at $12.5.  I have high hopes for Intel.