INTC

The Correction: Draghi; Chip, Telecom Warnings; Oil and MLPs

by

The equity markets have been under significant pressure the past few weeks, and we think there is further downside to come. Our view is that the equity markets will be lower than today’s levels within the next 6-18 months, if not tomorrow or next week or next month. We’ve taken profits on cyclicals, and we’ve already closed out the put option hedges in both portfolios for a substantial gain (the latest transaction alert email can be accessed here). Europe appears to be in a giant mess again. The region hadn’t been strong by any stretch of the imagination, but we recently picked up material weakness during Ford’s (F) recent analyst day, which in part prompted us to take a very … Read more

Performance Update: The Valuentum Buying Index

by

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 A version of this article was published October 26, 2013. By Brian Nelson, CFA We periodically update the performance results of the Valuentum Buying Index (VBI), the stock-selection methodology that drives idea-generation within the Best Ideas portfolio. The academic studies of the Valuentum Buying Index can be accessed here (white paper) and here (AAII). The latest iteration of the performance, dated September 3, 2014, continues to showcase the strong sorting mechanism embedded within the investing framework, particularly when the index is coupled with qualitative oversight and portfolio management skill. Sorting winners from losers is what the Valuentum Buying Index has been designed to … Read more

We Could Have Done Better with Hewlett-Packard

by

In investing, there are always trade-offs, and one of the challenges we face as a publisher is being crystal clear about this. For example, within the personal computer (PC) supply chain, we held the view that PC demand stabilization would be a key driver behind price-to-fair value convergence among a number of participants. But while we were pounding the table on Intel (INTC) and Microsoft (MSFT) for much of the past few years, we were less-enthused about the prospects of a turnaround at Hewlett-Packard (HPQ). Since the inception of the Best Ideas portfolio, May 2011, Microsoft’s shares (yellow) have surged 80%+, Intel’s shares (orange) have jumped more than 45%, while Hewlett-Packard’s shares (bottom line) have been roughly flat (bottom line). … Read more

Apple and Intel Soar

by

By Brian Nelson, CFA We generally don’t like commenting on pricing performance because it immediately becomes stale, but…  …when was the last time you saw Intel (INTC) up 7% on the trading session?!?! I know I can’t remember, but that’s what happens to Valuentum stocks! Intel’s stock has surged from $24 and change in March to more than $34 per share today on the heels of a strong second-quarter report and outlook (1)…this is a big move for a ~$170 billion market-cap company that pays a nice ~3% dividend yield! …and now that we’ve let our emotions show. How can we forget about Apple (AAPL)?!?! The iPhone maker is approaching $100 per share, the split-adjusted equivalent of $700 following its … Read more

Valuentum’s July Edition of Its Best Ideas Newsletter!

by

The Writing Is on the Wall, by Brian Nelson, CFA “The stock market is a no-called-strike game. You don’t have to swing at everything—you can wait for your pitch. The problem when you’re a money manager is that your fans keep yelling, ‘Swing, you bum!’” – Warren Buffett, 1999 If there is an environment more difficult to hit a pitch out of the park, I don’t think I’ve seen one. Valuations have been shooting to the upside for some time, making it difficult for investors to hit that proverbial home run. The market is climbing a wall of worry—and now, the wall has writing on it. Janet Yellen at the Fed had something to say about valuations in its Monetary Policy … Read more

Valuentum Economic Castleâ„¢ Rating Update

by

Read: Keeping the Horse Before the Cart: Valuentum’s Economic Castle™ Rating The Economic Castle Focuses on the Magnitude of Economic Value Creation The Valuentum Economic Castle™ rating is an enhancement of the competitive advantage framework (commonly known as economic moat analysis) that has become widespread and ubiquitous within the investing world. Whereas an economic moat framework evaluates a firm on the basis of the sustainability and durability of its competitive advantages, Valuentum’s Economic Castle™ rating evaluates a firm on the basis of the firm’s future economic profit spread (return on invested capital less its weighted average cost of capital). The companies with the strongest Valuentum Economic Castle™ ratings are poised to generate the most economic value for shareholders in the … Read more

Intel Leaps to $30 Per Share; PC Demand Stabilizing

by

Intel (INTC) is one of the most-followed firms on Valuentum’s website, and for good reason: the company is a holding in the portfolio of the Best Ideas Newsletter and pays out a lofty 3.3% annualized dividend yield at present levels. For our new members, our best ideas are always included in the Best Ideas portfolio and Dividend Growth portfolio. We first highlighted Intel in the August 2011 edition of our Best Ideas Newsletter and added shares to the portfolio in September 2011 at just under $20 each. Though a 50% move upward to its current price is noteworthy, Intel has also paid a nice ~3% annual dividend yield along the way. We attribute the recent acceleration in the firm’s price … Read more

New Highs: Intel Makes Splash in Mobile; AIG Scooping Up Underpriced Shares

by

At the Computex conference in Taiwan late last week, Best Ideas portfolio holding Intel (INTC) revealed the most energy-efficient processor in history — its Core M line of processors. The goal of the Core M, which is based off of the Core i3, i5, and i7 processors, is to enhance processor performance (with less power consumption) in mobile products, and we think the firm will make a big splash with the new chip. Picture: The first 14nm fanless mobile PC reference design from Intel; it has a 12.5 inch screen that is 7.2mm thin with keyboard detached and weighs 670 grams. The design is based on Intel’s next generation 14nm Broadwell processors. Named the Intel Core M processor, it delivers … Read more

Intel Continues Its Move to $30 Per Share

by

Frankly, it’s hard not to like Intel (INTC). The company dominates the microprocessor and chipset market, and while rivals can adapt quickly in the land of technology, continuous research and development keeps the firm a step ahead of the competition. If that weren’t enough, the company is simply a cash-flow machine, and its annual dividend payout is not only safe on the basis of the Valuentum Dividend Cushion score but also is poised to grow into the future. A strong competitive position, an attractive valuation, and a safe and growing dividend are a few qualities that make the company a Valuentum stock. It is held in both the Best Ideas portfolio and Dividend Growth portfolio. Intel’s goal is to be … Read more

Encouraging News Regarding Worldwide PC Shipments

by

You may not have noticed it, but Intel (INTC) has rallied nearly seven points since the bottom established in late 2012 – that’s roughly a 40%+ upward advance through today. On Wednesday, International Data Corp (IDC) released some very good news for the PC supply chain. Though worldwide personal computer (PC) shipments continued to decline during the first quarter of 2014, the pace of the fall was nearly a percentage point better than expected (-4.4% versus -5.3% forecast, -5.6% in the fourth quarter, and -7.3% in the third quarter). Much of the upside surprise during the period came from mature commercial markets as technical support for Windows XP expired. After eight consecutive quarters of declines in worldwide PC shipments, we’re … Read more