Monday, May 23, 2005

Apples and Intel to Wed

Apple May Use Intel Chip in Macs

Okay, I'm not even going to pretend that I am that interested in what Apple or Intel do. I really do not care. What I do care about is this:



Notice the uptick in the last month. Could an $28 Intel be on the horizon? Intel, is a can't miss stock. They are sitting on boatloads of cash. They have insignificant debt. They have very good marketing. And . . . technology is not going anywhere. If there is a long term stock to invest in, it would be Intel. Their PE ration is 22, which is not "expensive" (PE's have been used as a value-guage. 20-30 are what you look for. The smaller the number, the "cheaper" the stock.)

AMD is Intel's key rival and from what I understand, they make better chips, but their marketing is not all that great. Intel has branded itself and that will pay off: think "intel inside" and the four-note accompaniment even in computer ads. People are associating "intel inside" as a seal of quality and overtime, it only works in their favor.

Also sitting on that much cash means that Intel can turn up the R&D or marketing whenever it so desires and they can always make all important acquisitions when scoping out new markets or technologies. So there you have it, I like Intel to outperform the market over the next 60 years.

Recommendation: buy, only if you have an extra $30,000 sitting around with absolutely no where else to spend it and you have determined that all charity cases in the world have no present need of that amount of money.

0 Comments:

Post a Comment

<< Home