Joe Osha
Joe Osha
effect
It's not going to effect the company's position.
absence argument bad consensus constitute fourth likely news outlook rally relief stock struggle support understand upbeat
We think it's likely that the stock will see a short-term rally on relief that the outlook has not deteriorated further, but the absence of bad news does not constitute an argument in support of the stock...we struggle to understand the upbeat consensus outlook for the fourth quarter.
capacity chip general good industry intel invested sector treated
The semiconductor sector in general is in very good shape; the industry hasn't invested enough in capacity and that is actually very good for chip makers. Intel is often treated as a proxy for the chip sector, so the chip sector is doing well and so is Intel.
analog building buy deal decision despite fits objective presence ratings rich somewhat specialist stated texas
Texas Instruments' decision to buy analog specialist Burr-Brown fits well with the company's stated objective of building its presence in the analog business. Despite the somewhat rich valuation for the deal, we think that the deal makes sense for TI. We reiterate our intermediate-term and long-term buy ratings for the stock.
earnings estimate expensive growth intel prospects relative
At 27 times our 2003 earnings estimate Intel is still expensive relative to its growth prospects and its own history.
company increase lies national per potential revenue wireless
We think that the most interesting potential for National lies in the wireless market, where the company has the potential to substantially increase its revenue per phone.
bought community investment
We think that the investment community has bought into the idea of a second-half recovery, and that's probably going to happen.
believe continue cycle internet investment second year
We continue to believe that we are in the second year of a 5- to 7-year investment cycle in Internet infrastructure.
apply believe blunt continue desktop effort further intel markets mobile negative pressure result shares
We continue to believe Intel will apply competitive pressure to AMD in the desktop and mobile markets in an effort to blunt further shares gains, even if the result is negative for Intel's own profitability in 2006.
company incapable intel mean
Just because Intel has faltered does not mean the company is now incapable of executing.
adjustment expect fact gains given impact low market negatively next numbers product share stock surprised
We are not too surprised by AMD's announcement and do not expect the adjustment to numbers to impact the stock negatively at this point. Given the fact that AMD's product lineup at the low end of the market is more competitive than Intel's, we expect to see market share gains in the first part of next year.
appears company difficulty earnings growth high imagining investor level moving percent raise rate recovery stock sufficient
Valuation for the stock appears significantly high for a company with a sustainable earnings growth rate of 10 percent to 15 percent. We have difficulty imagining any second-half recovery that could raise earnings, and investor expectations, to a level sufficient to keep the stock moving up.
aggressive allow build continue intel market pricing rather respond suspect
We suspect that Intel will, at some point, respond with aggressive pricing rather than allow AMD to continue to build market presence.
business challenges currently earnings faces given intel lower multiple needs stock trade
Given the challenges Intel faces currently with its business model, we think the stock needs to trade on a lower multiple of 2003 earnings to be attractive.