Intel Corp (INTC)

[wbmw]

usuck, if not 2003 then 2004. The recovery is inevitable, double-dip or not. With TTM earnings currently at <$2.0B, Intel should be able to double that pretty easily. At the end of Y2K, Intel brought in >$10.0B in earnings. Granted there is no more bubble, and margins have been on the decline, but I don't think that dropping 80% in earnings is a long term trend. At some point, earnings will get massaged back to a normalized value somewhere between where it is now, and where it was after Y2K. I don't think $6.0B in earnings is out of the question (given a couple more years), which would give Intel an EPS of $0.90, and a P/E of <15. After that, Intel's growth comes from new businesses, new products, and demand from emerging nations. But well before that, I expect these things to be factored into the stock, which begs the question of when is the right time to buy. Will INTC go <$10? Might be better to wait.

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