vinod,
I read the article, but I remain unconvinced that INTC is over-priced. The other companies mentioned like KO and MSFT have obscenely high P/Es and are definitely too expensive.
A look at the WSJ's Briefing Book for Intel reveals that it has a trailing P/E of 24. Zacks shows consensus earnings estimates of $4.01 for the current fiscal year and $4.79 for the next. That's a 19.5% increase. That seems good enough to me, because I think that the estimates are a little too low. Intel's sales are always weakest in the summer, and I think they're going to surprise the analysts in the fall and winter quarters.
Further, since the stock is still cheap relative to the rest of the market, I think the price would not be hammered as badly as most if there was a major correction.
Personally, I have no use for (so-called) technical analysis. Earnings are what matter to a long-term investor, and not wiggles on a chart.
As far as buy, sell, hold recommendations from brokers, those are issued mostly to generate commisions. Hence, I ignore them.
Good luck with your strategy. I hope you like paying commisions and short-term capital gain taxes.
Chuck Martin
P.S. INTC closed at 94 5/8, up 2 1/2. The sky is falling, indeed! |
