This trade looks like a steal at $20. INTC just reported last week a fourth-quarter profit of $2.3 billion, or 40 cents a share, compared with a profit of $234 million, or 4 cents a share, for the year-earlier period. Revenue was $10.6 billion, up from $8.2 billion for the same quarter in the year-earlier period. Adjusted income was 55 cents a share.
Check the chart, this INCT is way oversold due to remarks made by President Obama on banks receiving TARP and his plan to collect ‘our money.’
Analysts had expected the chip giant to report earnings of 30 cents a share, on revenue of $10.2 billion, according to a consensus survey by Thomson Reuters.
Last Friday, analyst Vijay Rakesh of ThinkEquity upgraded Intel’s stock to buy from hold, citing the company’s “strong execution, good value, a stronger 2010 PC cycle.” Strong server chip sales also reaffirmed the anticipated up tick in corporate demand as businesses begin upgrading and replacing aging systems. The trend is expected to give Intel and other chipmakers a new big boost.
INTC”s strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, attractive valuation levels and expanding profit margins.
INTC’s revenue growth has slightly outpaced the industry average of 22.2%. Since the same quarter one year prior, revenues rose by 28.5%. The gross profit margin for INTEL CORP is currently very high, coming in at 76.50%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.60% is above that of the industry average.
This is a new position in INTC although I have previously owned and sold all INTC shares in the past.