MBLY

Intel’s Shares Trading at Huge Discount to Market

by

Image Source: Intel Newsletter portfolio holding Intel continues to put up strong results, and the market is simply not giving it credit for them. By Brian Nelson, CFA We were generally pleased by Intel’s (INTC) second-quarter report, released July 27. In a market environment, where other equities with little-to-no-growth are garnering outsize multiples, Intel registered top-line expansion of 9% on a year-over-year basis in the quarter, while it raised its non-GAAP earnings per share outlook for 2017 by $0.15, to $3.00, implying shares are trading at a very modest ~12 times current-year numbers. We would say Intel’s shares are a bargain in most any market, but especially in this one, where the average S&P 500 company is trading at 17.7 … Read more

Intel Makes Strong Move into Autonomous Driving

by

Image Source: Intel Newsletter portfolio holding Intel has agreed to acquire Mobileye, a leading provider for computer vision for Advanced Driver Assistance Systems (ADAS), for $15.3 billion in cash. “…we like what the deal brings for Intel. The company has effectively cut ties with its history as a PC chip behemoth, and is driving ahead full force into the broader connected devices market. The acquisition puts Intel at the forefront of the autonomous driving market, and its ownership of end-to-end solutions in the space not only gives it competitive advantages in the driverless car market, but also in the adjacent data center market.” — Kris Rosemann By Kris Rosemann Fresh off of a fourth quarter that its CEO called “a … Read more

Reflecting on Recent Report Updates: Favorites in an Overheated Market and Other Themes

by

It’s been some time since we’ve updated members on our recent fair value estimate updates. Let’s take a look at the opportunities that exist in some of our favorite portfolio holdings, as well as some key themes driving recent fair value estimate changes across our coverage universe. By Kris Rosemann and Brian Nelson, CFA The frothiness of the market has shown little regard for historical valuation norms, and the number of stocks moving to a 1 or 2 on the Valuentum Buying Index is growing as valuations become stretched across our coverage universe. For the first time in Valuentum’s history, there is now not one stock that registers a 9 or 10 (a top rating) on the Valuentum Buying Index. … Read more