Intel Corp (INTC)

[highlandpk]

Well, just for being civil I'm going to share some info I received during a conversation with an analyst at Prudential. FWIW, Pru doesn't do any investment banking so their research is completely independent - I always listen a little more carefully to what they have to say.

As I'm sure you are aware they are very bullish on AMD and very bearish on Intel. They actually wrote in a previous report that when they make the rounds in Boston and Baltimore nobody wants to listen to what they have to say about AMD; The burned once shame on you burned twice shame on me philosophy seems to still be the case here.

From the sound of things during their most recent rounds, Intel is still well loved in boston and baltimore. These guys from PRU have been yelling sell for some time now and nobody seems to want to hear it. I view this as very dangerous situation for Intel shareholders based on managements overly optimistic 2nd half projections. When those get missed, the boys in beantown will be unloading as fast as they can; I wouldn't be surprised to see Intel trade below $10 - in fact I'd be surprised if they didn't.

Until Intel can get 58.5% gross margins on sub $100 ASPs their business will remain very vulnerable to AMD.