Forgive me for not posting here for a couple of years. Further, I don't know how many of you here even remember me, but I still own mucho Intel shares. Given the recent downturn in Intel's stock price, I feel that I must ask this board for help.
I know that BofA reduced Q1-04 estimates for INTC by $.02 today, but can you tell me what is dragging Intel down. Since the day before Q4 earnings release, when INTC was trading at $34, the company has announced;
-Better than expected Earnings
-Better than expected Revenues
-Better than expected Margins
-A tax windfall of some $480 Million, which when added to Retained Earnings represents almost a 4% increase. Given that it is a one time event, it is still almost $ one-half Billion more in the bank.
-A doubling of the annual dividend.
-A new phototronics technology which can be made from silicon chips. The company states that the new chips will increase switching speeds by at least 50 times the current world record, and is not obtainable from today's electronic technology.
-A breakthrough in chip technology for High Definition TV.
-The reversal of the Intergraph Award, which saves Intel another $100 Million.
I'm sure that this list is not all inclusive and this thread can add many others positive events since a month ago...if you haven't already.
Ah ! but some will say, Intel said on their conference call that Q1-04 earnings will be flat from Q4-03. Is this a growth company that deserves its multiple? To this I say "for sure", there is nothing unusual about that. Intel has always had a seasonal downturn in revenues from Q4 to Q1.
Over this time, Intel's market price has gone from $34.60 to below $30. What's going on here? Where are the good analysts not to recognize the above? I would like to know who's manipulating the stock price? and why?
Jules |
