Intel: An Opportunity Due to Market Uncertainty


In a previous article we talked about how panic and fear can create buying opportunities. As fear spreads many investors will abandon their plans showing a complete disregard for
any long-term investing plan based on fundamentals. It looks like we are flirting with this territory and Intel (INTC) could be worth a look.

When we last published an article about Intel we calculated a fair value of $25. The stock was trading at a 21% discount at the time. Intel reported their fifth consecutive quarter of record revenue on July 20, 2011. Is the stock cheap today?

First, we’ll look at Intel’s P/E vs. earnings over the years. Given the erratic EPS performance and lack of growth from 2005 through 2009, it’s easy to see why the company’s PE has been erratic over the years. But the pendulum appears to have swung too far in the opposite direction with a PE around 10. This appears cheap; however, we’ll look at a few metrics before coming to any conclusions.
…..Click here to read the full article at SA

Advertisements

About IIEX

Click "About" in the menu at the top for more information about the author. We also have a page at "Seeking Alpha" ( http://seekingalpha.com/author/david-klein ). Please Click on and read the "Disclaimer" in the menu at the top. Have a question? Contact us at iiex@live.com.
This entry was posted in INTC, Stocks. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s