This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Don't Overreact to Intel's Earnings Results

What this tells me is that as downtrodden as Intel may appear, management has figured out ways to bring back operational efficiency means that the company is still in capable hands. Not to mention, the company has laid down the foundation for its long term-success, which includes (among other things) perusing growth in China and emerging markets, and reinvesting cash flow back into research and development.

In that regard, I'm willing to give management the time it needs to make the necessary adjustments to grow market share in that all-important mobile category. I know this is where things get sketchy.
[Read: <a target="blank" data-add-tracking="true" href="http://www.mainstreet.com/article/career/work/life-balance/how-keep-your-workplace-happy-during-holidays"><em>How to Keep Your Workplace Happy During the Holidays</em></a>]

I'm not suggesting that Intel is suddenly going to overtake Qualcomm and Broadcom (BRCM), but I believe Intel has the ability to emerge as a legitimate player not only in mobile devices but also baseband chips.

That Samsung has chosen Intel's Clover Trail+ mobile chip processor to power its Galaxy Tab is a small step. But it's one that can turn into a giant leap. This also demonstrates that Intel is, in fact, able to optimize Google's (GOOG - Get Report) Android platform, which some people in the media have argued Intel couldn't do.

So as I've said on more than one occasion, taking a position here on Intel should be about what you believe the company is able to do the future. Judging Intel solely on a quarter to quarter basis doesn't work.

Given management's plans to grow the company's chip business in the emerging markets, shares of Intel can command a long-term fair market value of $32 per share on the basis of improved margin and free cash flow.

At the time of publication, the author held no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Richard Saintvilus is a co-founder of StockSaints.com where he serves as CEO and editor-in-chief. After 20 years in the IT industry, including 5 years as a high school computer teacher, Saintvilus decided his second act would be as a stock analyst - bringing logic from an investor's point of view. His goal is to remove the complicated aspect of investing and present it to readers in a way that makes sense.

His background in engineering has provided him with strong analytical skills. That, along with 15 years of trading and investing, has given him the tools needed to assess equities and appraise value. Richard is a Warren Buffett disciple who bases investment decisions on the quality of a company's management, growth aspects, return on equity, and price-to-earnings ratio.

His work has been featured on CNBC, Yahoo! Finance, MSN Money, Forbes, Motley Fool and numerous other outlets.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
GOOG $600.70 0.00%
INTL $25.56 0.00%
QCOM $54.29 0.00%
AAPL $109.27 0.00%
FB $88.26 0.00%

Markets

Chart of I:DJI
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASDAQ 4,683.9190 -49.5780 -1.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs