Hi Lawrence,
Interesting commentry... on the valuation side, you are absolutely right about Intels valuation -- it's high compared to history. On the other hand, for a solid company growing at 30% annually it deserves a high valuation. It could easily climb to MSFT levels before it drops back to historic 15PE... So as an investor (not a trader) I wouldn't sell on this basis alone.
Q3 may look as if it will be quiet, but INTC is transitioning to PII, PMMX and PPro, all of which have much higher price tags. I think the per unit average revenue will increase throughout this quarter, giving INTC revenue growth on that basis alone.
As for demand, NT5.0 is due this year, and this will likely cause server demand as people implement their 'netPC' configurations with that release.
Overall, I may agree with you that after this run INTC will hit a 'plateau' for a while, and my LEAPs might get sold. My core stock/warrent holding remains, however, because I simply cannot predict successfully the movement of the markets...
Richard |
