Exclusive Analysis for the Discerning Investor
Tech-giant Microsoft announced its Windows 8 tablet, “The Surface.” We don’t expect it to kill the iPad, but we think it’s positive for Microsoft and a negative for Google and computer OEMs.
Dell, once a retail computer giant, is moving to software and enterprise solutions. We think shares of Dell are undervalued.
iOS 6 and the new Mac Book Pro show that Apple is ready to compete with entrenched foes.
After increasing more than 30% since September of last year, Best Idea Portfolio holding Intel has fallen 10% during the past month. Despite the pullback, we think the firm’s stock price rise is far from over, with the company registering a 9 on our Valuentum Buying Index.
Hewlett-Packard posted strong second-quarter results that came in better than consensus expectations. We’re optimistic on HP’s restructuring plans as well as the company’s dirt cheap valuation. However, peers like Intel and Microsoft look like much more attractive investments with better growth potential and near-term catalysts. Both companies also provide investors with better, safer yields, as we think both are best-in-class in chips and enterprise software, respectively.
Intel, one of the largest holdings in the portfolio of our Dividend Growth Newsletter, raised its payout 7%, to $0.90 on an annual basis. We expect even further dividend increases by the chip maker and view its shares as undervalued.
Best Idea Intel () reported another strong quarter Tuesday. Some of the financial highlights include a strong gross margin of 64% (65.1% non-GAAP), earnings per share of $0.53 (versus consensus expectations of $0.50 per share), and $3 billion in cash flow generated from operations. Additionally, during its first quarter, the company bought back $1.5 billion in stock and paid out $1 billion in dividends. Management still has the authorization for an additional $8.6 billion in share buybacks (which are value-creating at these price levels), and we think the company’s excellent dividend payout (0.84 per share; 3% annual yield) could increase meaningfully in coming years. Our fair value estimate remains unchanged. Though revenue only advanced modestly on a year-over-year basis thanks to inventory … Read more
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Intel (INTC) reported better-than-expected fourth-quarter results Thursday that relieved some concerns about the PC market following the chipmaker’s negative pre-announcement several weeks ago. We are maintaining our above-market fair value estimate for Intel and continue to hold the firm in our Best Ideas Newsletter and Dividend Growth Newsletter. “$54 billion in annual (GAAP) revenue, up 24%, $2.39 in annual (GAAP) EPS up 19%, and $18 billion in dividends…” Reading the above headlines, 2011 was truly an excellent and record-breaking year for Intel, and we believe 2012 will continue to be a good one for investors. For example, the firm’s product and technology pipeline includes opportunities presented by Ultrabook systems, data center and security needs, as well as Intel-powered smartphones and … Read more