Intel Corp (INTC)

[wbmw]

UPC, Re: I sold all my Intel A/H. GMs lowered 2 points for 2004. That was the warning signal advocated by some here. Thanks for the advice.

Looking at the stock in after-hours, it seems a lot of others felt the same way. The drop in GMs is a red flag for right now, so it's probably best to be on the sidelines in terms of an investment. Do yourself a favor, though, and track GMs going forward. Intel may be down, but it's still a strong company going forward. The trick is to find the bottom and get back in when it's cheap.

One positive piece from the earnings conference was that flash and communications seems to be on the uprise. In spite of the seasonally down quarter, the communications group gained $206M in revenue (with flash responsible for $170M of this), all while cutting losses nearly in half. I think Intel is staged to become profitable in the communication division within the next few quarters, and that will influence the stock price as well.

Best of luck out there.