Intel Corp (INTC)

[smooth2o]

Giving a 15 PE, that translates to roughly a $30 stock price.

Nice thought, but I don't think that will happen. I think the SP will stay in the 20-24 range, maybe pop to 26 with great earnings. I suspect that above 25 there will be a lot of selling pressure from long term holders including funds which will drive the price down again where they will buy back in. Also, as any analyst will tell you, Intel can't sustain these high margins, therefore high profits forever. Something else will happen, either AMD will return from the grave or Intel will get immersed in lower margin businesses or analysts will see it that way and the SP will remain below 25.

Not to mention there are already reports of downgrades due to the mess in the EU which will always cast doubt. Regarding the PE, I think it will simply adjust to whatever it needs to be, 10-12 if need be. I don't believe that Intel will be viewed as a growth company as I don't think they will make a large dent in the emerging growth products in 2011. I would look at that again in 2011.

For holders, I would think that selling in the mid 20's and buying back in lower would be a good strategy through 2010.

Smooth