Alex,
I don't expect INTC to test 70 again any time soon. I just averaged down from 76 with a bit more at 74 today. The Bollinger bands would say we are at the lower end of the current trading range, where we have been stuck since the earnings warning.
The MOT results were at best in line with expectations. They definitely didn't set the world on fire, but at least the roof is not caving in.
The impact of the sub-$800 PC is not yet being felt completely, and probably won't be for some time to come. There is obviously going to be a big surge in unit volume, which has already helped low-end retailers like Best Buys, while savaging some of the direct marketers, like Gateway. The issue is whether INTC is positioned to thrive in this type of market, or they will have to yield to low-margin guys, like AMD (I doubt it). INTC is a process-driven company, so I think they will profit on the longer term from greater volume.
BTW, MSFT will benefit enormously, since their per-unit incremental costs are virtually nil.
Get it cheap now, while you still can.
Good Hunting,
GENE |
