Yaacov, re: Intel & "according to CNBC!"
My humble opinion:
First, you have to take CNBC comments for what they are worth, very little. You get much better analysis on this thread.
Second, for at least the next two years, Intel's core PC component business seems to be sound, and growing. Two years is about all you can expect in "Internet time".
Third, their other initiatives are completely unproven. Intel could succeed or fail in data farming, network gear, Internet appliances, ITanium, DSP's, and the *hidden* Intel mutual fund. They have very good managment, but they have not been recently challenged to expand their focus beyond their core business, as they are now. Are these businesses incremental, I would say yes for the next two years. After that, they may need these businesses to replace lost GM in their core business.
If you want a sure thing, 30 year T-Bill's are yielding 6.5%, not bad at all. Or you can bet on AMZN, a long shot that could pay off big time. Intel is somewhere in between. You are betting on PEOPLE with a track record of success.
I'm holding, and I'm watching carefully. Intel is investing focus and money in completely new ventures. There is more risk, and potentially more reward, than there used to be with this stock.
John |
