Posts Tagged ‘goldman scahs’

Intel News

May 20, 2011

As an Intel stockholder I’m angered by “pundits” that continuously slam Intel in spite of their stellar performance. The latest is a Goldman Sachs announcement that one should place a ‘put spread’ on Intel over the next year. Of course Goldman Sachs doesn’t reveal what their interest is. Where is the SEC when you need it?

Intel is firing on all cylinders with 22 nanometer 3D transistors, rollout of Sandy bridge then Ivy bridge, the Atom processor Cedar bridge, and is making aggressive moves into cell phones and tablet market. They also pay a very nice dividend of over 3% which is very unusual for a Silicon Valley company. They have at least a one year lead in process technology which is like having a 20 year lead if you are making tractors.

Then why is Intel selling at such a low P/E ratio of 10.9 (at todays price $23.24)? It should have a P/E above 20. However it is a favorite punching bag for TV talking heads and players that are trying to manipulate the stock for their own gain. The SEC seems to be conspicuously absent when it comes to TV and Cable talking heads and their guests, chartists intent on making their predictions come true, investment banks that are heavily leveraged in the market and want to make more money than God, twitter marketeers, email spammers and a variety of other new-media types.

Hey! The fundamentals will win out in the end but these rascals can certainly make the stock volatile in the meantime. Like good analysts say, buy on the dips. For more on stock dos and don’ts see The Five Syndromes