Robert,
The pullback the last 2 days is due to technical factors only. I view
this as a normal, healthy, short-term correction after the sizable run-up the last month. I also see this as a buying opportunity before
next week's earnings. Believe me, if Intel meets earnings and
forecasts a strong rest of the year (pretty good odds in my opinion),
this stock will see the 110s before the end of the month & the
120s before the end of the year. Remember, this stock is still
very REASONABLY priced based on current/future earnings and growth
rates.
As for competition, I seriously doubt large OEMs in a very competitive
environment in which everything matters (perception, quality, price, etc.) will switch to such suppliers as cyrix, AMD, etc who are on the
verge of serious financial difficulties...In fact, it is Intel who
is gaining market share from the competition via UNIX platforms...
The only threat to Intel i see is from a slowdown in demand, but I just don't see that happening..In fact, I see this demand increasing as more and more businesses finally start to upgrade, overseas, etc.
In summary, Intel is a very strong buy (fundamentally) at these levels. Don't worry about short-term technical factors, & use it as an opportunity to buy more....
joey. |
