Over the past 6-8 months I have maintained a long view on the two stocks which have gone up a little bit but that I feel is just about the start of a big trend – INTEL Corp. & Microsoft Corp.
INTEL Corp. (Ticker: INTC)
Have been recommending and personally interested in this stock for past few months and strongly recommending this stock to accumulate at lower levels (17-20) and on SIP basis irrespective of the price because what I feel is that the story is just about to being…
The stock has been in a very narrow range of 17 to 23 for the most part of the decade except on a couple of occasions which did not last long. So the question now is that why do I so strongly feel that it would breakout of that range and inch higher? Predominantly the technical setup looks really beautiful and then a few numbers that I would like to point out which are publicly available but not realized in the stock price.
Checkout the financial data below:
Firstly, the company has a solid top-line growth in the last few quarters and I feel that it’s just the start of a major trend. On the margin front it enjoys eye-popping numbers that keep on beating everyone’s expectations on QoQ and YoY basis. Also, it suggests that this is a high entry barrier business which lets them enjoy high margins and with the brand name that it has created over years I expect them to at least keep up on that front (if not better).
Now, for all the naysayers who feel that this is just the US economic cycle reversal from 2008 crisis and because of that the revenues growth have popped up, so once things start to settle down or even deteriorate, the revenue growth will slow down and bla bla bla.. I have some good news for them. Checkout in the past decade the revenues as a function of geography which indicates that the management was smart enough to realize where the real growth is going further:
So this could as well be a proxy play for people to have an exposure to asia pacific region which shows no sign of a meaningful slowdown and by any standard have respectable growth numbers.
Not to mention that the dividend history of the stock has been 2.5-6% YoY for over a decade (for more info checkout
http://www.intc.com/dividends.cfm). Currently 3.5% when everyone is aware of the savings rate in United states
. Also, for all the P/E watchers for a company that is growing at such a rate 10-11 P/E looks light if anything.
I remain boldly bullish on this stock and recommend to buy on every dip and SIP at current and a little higher levels too as my projections in next 3 years are about 2x from current price if not more.
Another couple names that goes in my favorite lists are Google and Microsoft. Due to time constraints won’t be able to write more about it. But the story is similar and I hope to write about it someday.
Microsoft Corp (MSFT):
Google (GOOG):
Have mentioned this so many times and yet again. To see the chart see link below:
Happy Investing!!
