Intel Corp (NASDAQ:INTC)
CAPS Rating:
Chip giant Intel develops advanced integrated digital technology platforms and components for the computing and communications industries.
Chip giant Intel develops advanced integrated digital technology platforms and components for the computing and communications industries.
Recs
Lets see here. Market leader in its industry.... PE under 10....growth rate over 10% for the next 5 years.... bought back over 10% of its stock last year when it was undervalued..... awesome returns on capital..... low debt.....chart looks like a buy relative to the S&P......am I missing something here? NOPE... THAT IS WHY I AM GREEN THUMBING IT!
Berkshire bought INTC around $19-$22 or so, and sold at a decent profit just a quarter later. What do you think are the chances that they'd buy back in if the price drops below $20 again?
Also, on a personal note, I was trying to start blogging on this site. However, blogging requires either an invite from another Fool member, or an application to be filled and accepted. I sent two applciations over the past three months and have heard nothing back. Therefore, I must ask a favor. Would you mind inviting me, so that I can start blogging? Thanks alot!
How do I do the invite? I will if you tell me how!
I sent an email to find out how. If you find out before me...let me know.
I will. I also sent an email of my own. Thanks!
Great information. Thanks. One thing I wonder is, what is the "story" of the company? I.e., does it have a compelling story of enduring growth for the foreseeable future? That's another way of saying, what is its unique product or service that will keep the future earnings coming in (because after all, it's future earnings we want to know about)? I'm aware that you mentioned "growth rate over 10% for the next 5 years", but we also know technology is a hugely competitive, rapidly changing field, and companies' prospects can flip in less time than it takes me to power up my aging Dell laptop in the morning. So the key question is not Intel's current attractive valuation, but rather, how secure is its place in its market going forward?
GirlScoutDad.....that is a great ? (how secure is its place in its market going forward?) If I knew the answer to that with every stock I would be a VERY rich man. The fact is you don't know for sure with any company. That is why I like picking market leaders. Or companies with a long proven track record. It is like a A student school. Sure they might do poorly on a test once in a while but if I want to pick someone to take the test for me I will go with the A student every time. Get what I am saying?
That is why I don't like picking tech stocks in general because technology is always changing. The ones I will pick have to be market leaders in their fields BY A LONG WAYS.....MSFT INTC IBM are a few CSCO could be another.
It's time to pull back!!
To the contrary. When the price is falling, that's when you jump in. Especially in a cyclical market like semiconductors. Especially more so when said stock is handing out an easily sustainable 4% dividend.
@GirlScoutDad: To answer your question, Intel is getting involved in the Mobile device industry. Do some research on the Haswell chip set.
Also, now probably isn't the time for anyone to do long term investing. Google these articles,"EVERYONE Is Passing Around This Recession Warning Chart Today" and "GOLDMAN: 'Clear And Present Downside Risks' Will Send Stocks Tumbling Into The End Of The Year." This is, of course, just my opinion.
This is the mad rush in or out of stocks depending on which way writers feel the way the wind is blowing. Even one of the last century's great stock pickers suggested that throwing a dart at the newspaper listing of stocks could have just as good if not better results that following the so-called stock sages of his time. Of course our fools for the most part seem to be picking winners for the long term with great returns. Though, at times I wonder about some of stocks, that's why it is expensive to be wrong. One big winner balanced out many, darn it, of my losses. A question I have, is Ellie Mae related to Fanny and Freddie Mae?
Ya...
I've stopped listening to analysts recommendations. Had too many losses in my time due to bad advice from them. Sometimes I wonder if they're paid to pump stocks, but haven't found any real evidence to support a conclusion. I bet some of them are. As can be seen on the Motley Fool, it's quite possible to be right 70-90% of the time with stock picks, but only if you're willing to get dirty with a ton of research well beyond simple valuation of stocks- IMO.
Like Valuemoney I generally don't like tech stocks either. Same for fashion stocks. Things change too quickly. But the story with Intel is that they are an 800 pound gorilla with tons of cash and multi-billion dollar wafer fabs. Some guy in his garage is not going to put Intel out of business. Their moat is huge.
The knock on Intel is that they missed the mobile market and are tied to a dying
PC market. Not really true. Intel is late to mobile but the gorilla has decided to play with their latest offerings of low power high-performance chips. If mobile is where the money is then Intel will go there. they have the resources to build whatever they need and hire any expertise they need.
The other side to mobile is that every mobile device connects to some server to get its information. Intel isn't just in PCs, they are heavy in servers. The cloud will be big and Intel will be there. I also love Cisco in this area.
The PC market isn't quite dead either. Information consumers can get by with tablets and phones but people creating content and businesses need a keyboard. Ultrabooks will be around for a long time.
Full disclosure: I bought Intel at 18, 20, 21, and 23. I don't own Cisco yet but I will soon.