Saturday, June 01, 2013

Barron's Gives Intel Thumbs Up!

I have had several of my stock holdings (SAI, GNW and VIAB) featured positively in Barron's over the past year.  You can now add INTC to the list (The Stars Are Aligning for Intel).  The article spoke about how INTC is starting to break through on smartphones and tablets and how their research dollars are starting to pay dividends.  I felt they were a bit aggressive in where INTC stock price could go from here (they actually said double with dividends), but I do believe they are a compelling story.  Intel is probably a little under-weight in my portfolio at #15 (everything multiplied by my factor):

Stock Avg Cost Current Price Dividends Gain per Share Sum of Shares
AAPL          493.89                    449.74              5.11                  (39.04) 294
CSCO            17.24                      24.12              0.63                      7.50 4,328
TC-PT            15.43                      18.45              0.41                      3.43 5,500
GNW              7.10                      10.81                   -                        3.71 9,000
SD              5.33                        5.17                   -                      (0.16) 18,000
AOD              3.97                        4.14              0.09                      0.26 15,581
FCX            31.23                      31.05              0.40                      0.22 2,060
RIG            51.79                      50.23              0.56                    (1.00) 1,250
GTAT              3.39                        4.45                   -                        1.06 14,000
CIM              2.77                        3.05              0.09                      0.37 20,000
CSQ              8.34                      10.72              1.28                      3.66 5,629
PGR            20.56                      25.49              1.23                      6.16 2,118
ABR              7.16                        6.78              0.17                    (0.21) 7,402
PRE            67.59                      90.65              3.66                    26.72 540
INTC            20.99                      24.28              1.45                      4.74 1,996

I may consider buying more on a pullback.

I Told You So!

Another Barron's article discussed how the price to earnings ratios are inflated due to the usage of non-GAAP measures, such as restricted stock grants for many tech firms.  I discussed this problem in-depth in early May as I was reviewing my next tranche of MFI stocks. (Beware the Hidden Costs in Tech). Remember, you read it here first.

FCX Announced Special Dividend

With the acquisition of the Plains deal completed, FCX announced a special $1 dividend this week (Freeport-McMoRan Copper & Gold Inc. Declares $1.00 per Share Supplemental Common Stock Dividend). Not quite as exciting as an increased dividend (which is more permanent); but I'll take it! I wonder if they will change their name as they are much more than "Copper & Gold" now.

Have a great weekend everyone.  I hope this round of bad weather has not impacted anyone adversely.
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2 comments:

Unknown said...

Not sure if the first time worked but was wondering what a good entry price for INTC would be?

7:55 PM
Marsh_Gerda said...

I often put in bids at 5 to 10% below the current price. They often hit in a downdraft.So maybe $1.50 to $2.00 lower than today's price. But I do not use any form of TA.

6:26 AM

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