Amy - Re: "Are you thinking of buying INTC? I got some today at 72 3/4. Maybe too early? "
I sold some January $65 puts and will be buying more stock if Intel drops into the mid $60s.
Just how bad can an investment be in the US's 3'rd most profitable company, pocketing $1.9 BILLION/quarter, selling at a P/E of around 30, with an investment portfolio currently worth at least $5 BILLION, with $8 or $9 BILLION in CASH in the bank, with FOUR 0.18 micron Wafer Fabs ( and a fifth on its way), with the major market share in Flash memory, 85% of the x86 CPU market, a fully functioning 64 bit advanced SERVER/WORKSTATION CPUs (ITanium) up and running and shipping to customers in sample/evaluation system quantities, a new IXP communications processor, a CDMA Cell Phone CPU supplier (DSP) under its belt, and an upcoming 600 MHz StrongARM processor ?
I invest for the future - not for a thrill ride tomorrow.
Three years from now, Intel has a great chance to expand its already dominant microprocessor business, expand into the burgeoning Router/Switch/Communications business as the DOMINANT component supplier, and gain significant new market share in the enterprise server and Workstation CPU business where they now have near-zero market share.
When everybody in the world shops and communicates and is entertained via the Internet, 85% of them will be doing this with an Intel CPU of one form or another as their main, direct communications engine.
Three years from now, I expect Intel to be a $50 Billion company with about $13 to $14 Billion in profits.
In three years, Amazon.com is expected to make its first quarterly profit.
Paul |
