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| Intel - A Chip of the Old Block Independent Buy-Side Research By The-Adviser.com - |
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SERVICES WHY US |
New
York - In March, our research team
originally expected that without drastic moves to expand product lines and cutting costs,
Intel was headed towards a late summer bottom near the $40 range. Intel has proved our
analysts incorrect. In the past several months, Intel's business strategy has changed focus:
Overseas growth, especially in Asia, has rebounded. Asian economies, which have been in a recession for several years have started to turn. Demand for Intel branded low-end chips are increasing beyond our original expectation because of aggressive pricing that allowed PC manufacturers to afford the Intel chip versus buying AMD's chip. Demand for high end chips is also higher than our original expectation. Both small and large businesses alike are sticking with the highest performance chips available in the hopes of lowering future replacement costs. As such, our view on Intel has changed. Our earnings estimates are below:
The stock currently trades at $89 (the bottom hit was $50). Although the stock is overvalued relative to historical revenue growth and earnings (the stock trades at a PE of 40), we are entering into another growth phase of Intel. We believe that Intel is a buy at the current price and a better buy at $72 and below. The summer slowdown is over. About Us ___________________________________________ Note: The Company does not earn fees for investment recommendations or referrals. Our research reports are prepared for general circulation and are circulated for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. The Independent Adviser Corporation, its affiliates, directors, officers, employees and employee benefit programs may have a long or short position in any securities of an issuer or in related investments. Please read our full disclosures by clicking here.
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