Replies to post #52205 on Zeev's Turnips Patch-No Politics (ZEEV)

[limtex]

How low does intc go to if the news isbn't brilliant?
L

[Joe Stocks]

DJ Chip Analyst: Sees Intel Raising Margin, Rev Views >INTC



NEW YORK (Dow Jones)--Intel Corp. (INTC) will likely raise its fourth-quarter margin expectations, said Adam Parker, semiconductor analyst with Sanford C. Bernstein.

"I expect them to have margins of 50% on increased revenue," Parker said in a CNBC interview Thursday.

Investors already expect Intel to raise revenue guidance because of better personal computer sales and lower initial expectations, he added.

In November, Intel reiterated its fourth-quarter revenue view of $6.5 billion to $6.9 billion. The company expects margins of 49%, Parker said.

Last week, Parker downgraded his position on Intel to hold from buy because he doesn't see the company earning more than $1 a share in 2004.

Analysts currently expect the company to earn 87 cents, excluding goodwill, for the period.

When it comes to Advanced Micro Devices Inc. (AMD), a competitor of Intel, Parker is "still uncomfortable with their cash position."

Earlier Thursday, AMD raised its fourth-quarter outlook, because of stronger-than-expected personal-computer processor demand and continued strength in its high-density flash memory products.

[mlsoft]

Joe...

I do not discount the possibility that INTC could produce a some good news, especially with some "feel good" statements based on hope. I doubt however that they will be able to say anything that matches the expectations for a quite bullish call, which is pretty much the norm as far as I can tell.

I tend to expect selling on the news, perhaps after a brief rally.

mlsoft

[wahz]

Hi Joe,

I don't think that expectations are very high, but expectations are absolute for them to guide up modestly. If they guide up beyond that there could be a huge reaction up. Its become obvious that INTC is holding a premium for their expected future market dominance in WiFi.

What are the chances of them guiding up more than modestly? This is where I have to disconnect from my positive nature: no one should expect for them to guide up to a level that is a surprise.