Intel Corp (INTC)

[wbmw]

Re: After a mediocre report and not so great guidance and analyst comments of a price war, it seems like now might be a good time to buy Intel for the long term. I haven't posted in a while. I was a long term AMD holder, but I exited that position a while ago and I have been sitting on cash waiting for a new opportunity. IMO, Intel is that opportunity. In the next week or so I'll be buying shares and 2008 leaps. Below $18, Intel is almost a steal. I believe Intel could have a turnaround year in 2007 and be back up in the $30s.

Based on the earnings conference, I am trying to determine the earnings power of Intel going forward. Along with some Wall Street worries, I am seeing limited revenue growth opportunities, except unless the company can make the platform strategy work. There may be cost cutting opportunities, and Intel can surely focus stronger on their core CPU and component markets by cutting out unnecessary business groups. This would increase Intel's earnings power, assuming they can remain competitive. If Wall Street believes Intel will hold market share and grow with the market, we might be able to expect a 20x P/E multiplier on earnings of >$1.00. But I don't think we'll see the days where P/E is >30 and earnings is >>$1.00. The market is changing rapidly, and other than some short term improvements due to increased competitiveness, I don't know what the long term will hold.