OT - HB,

Not sure I agree that INTC is overpriced here - might be close to fair value, although 2 things are of concern: Their forward guidance down is obviously concerning, as well as their mobile division spending $1bln while taking in $1mln in revs - it's an old statistic,  but whether that kind of spending ultimately results in a decent footprint in areas where they have no presence has a great deal to do with their future profitability. INTC seems to be AMD's lunch on just about all fronts, but that won't get you a cup of coffee.

I have viewed INTC as a great company that is facing growth challenges.  These challenges have been ongoing for several years and I do not yet see results that would excite me enough to change my sentiment.  At a forward PE of 12.80 (now in question given the rise of the dollar and a PC market that still looks challenged), it looks cheap, but given the doubts surrounding growth, it does not look all that cheap to me.INTC generates an enourmous amount of revenue from its high end CPU business, it will take a lot of new products in new areas to move the needle in any meaningful way.  INTC lingered in the 20s a couple of year ago, and it recently hit $38, on the overall positive market sentiment, rather than on the business generating positive growth.   All that said, I can understand someone owning the stock for the juicy dividend and the overall stability it provides. 

lt cap,

Yes, I have to admit that spending $1bln on mobile and getting a $1mln in revs is pretty concerning, given that I think you're right - the need to establish a decent footprint in mobile. I don't think the game is over yet on that sector, but the 'early innings' aren't too encouraging, so far. I think the sale of the set-top box initiative was wise. I like the fact that they both own their own fabs (lower cost) and are leading edge in nm shrinkage (better chips earlier) are strong points, with the flexibility to 'rent out' fab capacity to produce chips for others when their own demand has some slack. I like the fact that they're still in bed with Apple to some degree. I like the fact that even though their mobile presence isn't taking off it has the potential (tricky term, that) to produce products such as SOC that are better than the competitions', and if they take a hit on margins to get a customer base, that's the price of entry. Lastly, as you say, even if the stock goes nowhere, the dividend is good enough for me if it reaches around 30, I'd take a close look at buying. But, as first said, mobile is where to keep your eye on. Windows phones are/were a joke, Microsoft stepping on it's own  d*** again. I do think that computers that serve as dual desktop/tablet will be big, and MSFT's Surface 3 looks like a viable machine.  I am sorry that they have MSFT as their biggest partner - kind of like teaming up with Elmer Fudd - (ever notice the similarity with Balmer, whose ghost still hangs over the company?)

 

FWIW, Goldman has INTC rated SELL, see the table (right side) in artcle:  bloomberg.com/ne...d=yhoo

So does that mean it is a buy?  ;)

Probably a strong Buy!  LOL

Frankly, I think they may be correct,  and yes, I am quite biased, I think they should have come out with their Sell rec when it was closer to the $38 level.