Nathan, thank you for your response. We seem to agree on everything except one point. Intel is uniquely positioned to be the leader in a technology driven product revolution over the next 10 years. I just think it could be a bumpy road, with some short term set backs.
The Street views Intel as a cyclical stock, with periodic down cycles (and assigns a low PE as they do to the auto industry, which is certainly cyclical). On the other hand, they give high PE's to growth stocks that they think will produce increased earnings every year without down cycles (MSFT is an example). IMHO, Intel falls in both categories, even though it may experience some rough times short term, the overall growth rate is so compelling it is hard to value the stock as you would, say, General Motors.
I'm sure there are better bets in the market for the next year than Intel, but on my time frame of ten years, I can't figure out a better place to put my money.
John Fowler |
