Thursday, October 20, 2011

Can "Droid-Tel" propel Intel to new heights?

After the market close on Tuesday, Intel (INTC) reported yet another quarter of great results!!

About a year ago,  CCI wrote this article describing my rationale for being bullish on Intel.
After one year, it seemed appropriate to review and update my investment thesis on Intel.

My current view is still bullish and I've updated my view of the stock in this new article.

The article points out that  Intel's server/cloud business has exploded, and the foretasted death of its global PC business has been at minimum.. ...premature.   The article further points out that Intel's perceived weakness in mobile now has the potential to  be viewed as an opportunity.  This is primary based on its growing  dominance in Android phones.   Years ago, Apple was first to market with an innovative, leading edge product in pcs only to find "wintel" become the dominate architecture of the pc computing paradigm.  There now seems to be some possibility that Apple's innovative, leading edge smartphone/tablet product  could be challenged by Google and Intel and their "droid-tel" architecture.  I'm not sure what will happen, but all it takes is for the percepiton that Intel now has a working mobile strategy to take hold, and that could result in its multiple expanding form its current 10 to 12 or 15.  That would propel the stock over $30. 


So as described in the article, CCI intends to let this winning position run  and will continue to try to enhance yield via options plays around the core position.

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