Well, it's true that Intel is doing better than ever, but also true that evaluations suck. There's no multiple on Intel or many other stocks; people are just not willing to be in any way "irrationally exuberant".
That given, the stock will follow the earnings curve and that doesn't rise that smartly.
OTOH, many companies are sitting there with oodles of cash on hand willing to give it to shareholders of record. In fact, they probably shouldn't. The advent of the internet has made today's business travel at light speed. You can simply reach to an offshore company to solve immediate problems in a flash. In fact, it's necessary. That cash is likely to be used for IT spending. If you look at how many companies are slashing expenses by 100's of millions, there's just no way to compete at the same level without technology and increases in productivity. Something's gotta break here.
Plus, for what it's worth, MS is launching Longhorn in May '06. There HAS to be a lot of hype around that product as it's MS's future for the next 5-6 years. BTW, it also has some features that are quite interesting and very useful to next gen applications. It could be quite revolutionary. At the same time comes dual core and platforms. The combination of the three, plus cash, plus incentive to change may result in a significant boost to both companies.
That's why I'm hanging around with Intel. The only question is, is the market willing? Elsewise, it could be a lackluster event.
Smooth |
