INTC

Microsoft Restructuring Phone Hardware Business, PC Environment Remains Challenging

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Dividend Growth Newsletter portfolio holding Microsoft (MSFT) announced the restructuring of its phone hardware business July 8. In addition to a restructuring charge in the range of $750-$850 million, the company will record an impairment charge of ~$7.6 billion related to assets from the acquisition of the Nokia (NOK) Devices and Services business, which closed just under a year ago. Microsoft also announced it will cut up to 7,800 jobs, primarily in the phone business. The non-tax-deductible impairment charge will be recorded in the fourth quarter of fiscal 2015, which ended June 30, and the job cuts are expected to take place over the next several months. These sweeping initiatives underscore Microsoft’s efforts to refine its focus to meet ever-changing … Read more

The Market Top?

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For those that are following along closely, you shouldn’t be surprised if the market corrects 5%-10% in the coming months. Let’s talk about this. From a technical standpoint, it may not be too far of stretch to say that we’re likely going to test the bottom of the S&P 500 (SPY) uptrend, and that could feasibly mean a drop to the 200-day moving average (blue line above). My technical alerts are telling me that with respect to the S&P 500, we’ve just dipped below the 50-day moving average, an arbitrary simple rolling average but one that is no less self-fulfilling than value investing itself. Don’t panic though. We’ve cut through the 50-day moving average many a time before during this … Read more

Intel, A Disciplined Capital Allocator?

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   Image Source: Gareth Halfacree We fully applaud Intel’s (INTC) management for walking away from the deal with Altera (ALTR). Though we liked the transaction from a strategic standpoint, our view centered on the assumption that Intel could “pay up to ~$40 per share for the company…and still create value for existing shareholders.” With Altera’s shares trading north of $43 at present, Intel would have had to pay a sharp premium to market levels, perhaps in the $60s, to entice management. Bloomberg reported that Intel had offered as much as $54 per share, and in this light, we’re glad the company walked away. Even though we think the bid was too high, our opinion of the executive suite has been … Read more

Why Intel Wants Altera

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In its biggest potential acquisition in history, newsletter portfolio holding Intel (INTC) is reportedly in talks to acquire Altera (ALTR), though deal terms have yet to be disclosed. We think Intel could pay up to ~$40 per share for the company on the basis of the high end of our fair value estimate range for Altera and still generate value for shareholders, though we wouldn’t expect Altera’s $2 billion revenue stream to be much of a needle-mover against Intel’s $50+ billion revenue base, at least initially. However, there are a few reasons why this would be a strategic win for Intel.  Altera is one of the top standard cell ASIC (application-specific integrated circuit) suppliers in terms of revenue. Due to … Read more

Intel Looks to Mobile to Overcome PC Weakness

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Intel (INTC) reduced its revenue guidance March 12, dropping expectations for the first quarter to $12.8 billion from $13.7 billion. The world’s largest semiconductor chip maker pointed to weaker-than-expected PC demand, as well as lower inventory levels in the PC supply chain. As far as Intel is concerned, management cited a lack of Windows XP refreshes from small and medium businesses, along with worsening macroeconomic conditions and currency headwinds as main factors in the decline.  Despite the reduction in revenue guidance, the mid-point gross margin expectations remain at ~60% for the period due to higher average selling prices offsetting any profit deleveraging caused by the lower expected volume of PC sales. The firm’s R&D and MG&A spending and depreciation expectations … Read more

Dividend Increases for the Week Ending January 23

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Below we provide a list of firms that raised their dividends during the week ending January 23. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week AGCO (AGCO): now $0.12 per share quarterly dividend, was $0.11. Alaska Air (ALK): now $0.20 per share quarterly dividend, was $0.125. Alexanders (ALX): now $3.50 per share quarterly dividend, was $3.25. Allete (ALE): now $0.505 per share quarterly dividend, was $0.49. Bar Harbor Bankshares (BHB): now $0.245 per share quarterly dividend, was $0.235. Cardinal Financial (CFNL): now $0.11 per share quarterly dividend, was $0.10. Collectors Universe … Read more

Quick Take: Intel’s Fourth-Quarter Results

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Guess which stock was the best performer in the Dow during 2014 and a holding in the Best Ideas portfolio? Yep, that’s right: Intel (INTC). The company finished 2014 up more than 40%! The chip giant reported solid fourth-quarter results January 15, beating expectations on both the top and bottom line. The key word in the press release: record. Intel put up record full-year revenue and fourth-quarter revenue and record chip shipments that go into PCs, servers, tablets, phones and Internet of Things. The company is seemingly doing everything right, as it pleases dividend growth investors. On an annual basis, all key financial metrics advanced nicely. Image Source: Intel Management commentary was also encouraging: “We met or exceeded several important … Read more

What a Ride! Intel Jumps Past $35 Per Share

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The news flow in the markets has started to slow as third-quarter earnings season nears a close. According to FactSet, through November 14, “of the 462 companies (out of the S&P 500) that have reported earnings to date for Q3 2014, 77% have reported earnings above the mean estimate and 59% have reported sales above the mean estimate…The blended earnings growth rate for Q3 2014 is 7.9%.” It appears that even with some big disappointments from such large firms as McDonald’s (MCD), Coca-Cola (KO), IBM (IBM) and Amazon (AMZN) that third-quarter earnings season could be considered better than mixed. That said, “for Q4 2014, 62 companies have issued negative EPS guidance and 19 companies have issued positive EPS guidance.” We … Read more

Intel Still Resilient Despite “Peer Pressure”

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As we hinted on the day of Microchip’s (MCHP) warning, we thought Intel (INTC) may be a standout in the chip space, and the company didn’t disappoint. The company’s third-quarter results beat estimates on both the top and bottom lines, and management issued solid guidance. Intel is included in both the Best Ideas portfolio and Dividend Growth portfolio. The headlines were impressive. Intel’s third-quarter revenue of $14.6 billion advanced 8% on a year-over-year basis thanks in part to record quarterly unit shipments of PCs, servers, tablets, phones and Internet of Things. It was its best-ever third-quarter revenue performance. The firm also noted that the quarter marked the first time that it shipped more than 100 million microprocessors in a quarter. Equally … Read more

Performance of the Valuentum Buying Index

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Note: A more recent analysis of the Valuentum Buying Index rating system can be accessed at the following link: /Value_and_Momentum_Within_Stocks_Too Two separate studies have reinforced the efficacy of the Valuentum Buying Index, both as a portfolio optimization tool and as an idea generator. If you cannot view the video, please consult the transcript that follows. To view Valuentum’s updated YouTube page, please see here.  The studies referred to in this video can be accessed as follows: Why Valuentum Buying Index Ratings Matter: /20141003_1 Valuentum’s Performance on Seeking Alpha: /20141009 Please be sure to read the studies closely in addition to watching the video or consulting the transcript below. Brian Nelson, CFA: This is Brian Nelson from Valuentum Securities. I’d like to talk … Read more