Replies to post #61187 on Intel Corp (INTC)

[wbmw]

Re: Even if they do .... it may not be "enough" for some analysts, and it will continue to stagnate.......
I'm feeling very pessimistic recently ...

Usually, when the market is at its most pessimistic, and the last holders have finally sold, does it hit a bottom and start to gain.

[smooth2o]

Jay: Even if they do .... it may not be "enough" for some analysts, and it will continue to stagnate.......
I'm feeling very pessimistic recently .

I'm with you.

Virtually, no one is looking at the real situation for Intel (products, process, earnings, market share, future, etc). They can do all those things well, and then they get to keep their 17PE.

GE reported a 6% drop in earnings due to the US consumer and financial related factors and the market falls >200 points and Intel who has 80% of business out of the US falls with it. GE actually reported expected growth of 5% best, flat worst.

So we take a $0.84 hit.

There's only a few things that will truly change the SP and move it into the 30's:
1. Failure of AMD
2. Renegotiation of the x86 license to drop the lawsuit and the EU action
3. Continued blow out earnings

None of the above are about to happen. AMD has a pretty (Nehelem-like) competitive product for the low/mid range and once they get their costs under control and change their business plan, they'll most likely break even.

Smooth