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No. of Recommendations: 2
It is hard to figure

Valuation looks striking (in this market)

- BS has 7b excess cash-invest
- FCF plenty - 20.2b ttm ni + da vs 9.34b capex
- dividend is 3.2%
- PE is 12.4x
- company buys shares
- operating margins well off high (though well above low)

some clear negatives
- mobile group a bust
- flat forecast for sales this year
- PCs - PCs - PCs

Did I mention PCs? Weakness seen in this area - little confidence latest iteration of Windows will help. On the other hand, there is an estimated 600m PCs over 4 years old and these are TVs or tablets - they do go bad.

My biggest issues:

*top line prospects going forward? No clue. VL WAG is 3.5% for next few years. At 55b in revenue, moving the top line is tough
*margins? I have no idea where they should be.
*what moves the stock price? No idea. It is down big in the last 2 weeks.
*Altera good or bad? I have no clue. From VL - paying 16.7b or so or 28.5x the 2016 estimate. Altera's expected 5 year growth rate on top line is 6%. Altera 'appears' cylical to me but what do I know? Almost nothing about this company. Course, Altera isn't going to impact INTC's financials one iota (20b trailing CF from Intl).



I own a dink. I'm not inclined to add - too much overriding ignorance on my part.

as always, thoughts welcome
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