You should NOT be short Intel and let me tell you why.
While it is true that Intel continues to be in a battle and is being criticized by doubters, it is also true that it is a very bad play to be short Intel now.
Before I tell as to why, I want to look at the people who are so so negative.
There are those of you out there who really honestly do see the current political state of America as a Huge negative that will dump the markets and the American economy.
Then there are those of you simply hate Intel's chance against the threats it sees in tablets and phones.
Now about those negatives. While it is true that the majority of Americans might think in a negative way about the American economy now, it is also true that obviously the people with a lot of money do not since they are driving the markets higher. In fact, the American economy is more than likely to boom in the next few years do to several things. First and foremost is OIL and Natural gas production in America. Do you happen to realize that the United States will likely be able to produce all of its needed Oil with in three years and after that America will start exporting oil? YES
HUGE MONEY for the American economy and huge for the American stock markets. So the GDP is likely to be 3% to 4% or more each year from 2014 to 2018. What? Fox news and the GDP say that we are in a death spiral? They are either full of it or honestly mistaken but in either case--they are wrong.
Booming economy means companies buy tons of servers. Intel
Now about the gloom and doom on Intel's future.
Intel will not be shut out of the phone and tablet markets. It is late but first does not mean you win.
What? Apple and Samsung will not use Intel chips in phones no matter how superior they become in performance as chips? Maybe you are right but so what. I bet you 5 years from now that a half dozen other phone makers will have taken massive market share from Samsung and Apple in phones and most of them will be using Intel CPUs to do so.
Intel will see 40 in the next 12 months.
"In fact, the American economy is more than likely to boom in the next few years do to several things. First and foremost is OIL and Natural gas production in America. Do you happen to realize that the United States will likely be able to produce all of its needed Oil with in three years and after that America will start exporting oil? YES"
[The oil boom is also going to create huge numbers of new jobs as well - substantially solving the unemployment problem.]
Wallis--Your assertion that an oil boom will "substantially solve the unemployment problem" is patently inaccurate. First, jobs are not created if drilling permits in the U.S. are not approved, and they are down 36 percent during the Obama Administration. Also, you need to be able to transport the oil once it is taken out of the ground,. So far, the president is opposed to the Keystone pipeline--a majjor transportation proposal. Even if more drilling and transportation systems are approved, there will still be millions of people in the U. S. unemployed. So, it is simply inaccurate to say that an oil boom will "substantially solve the unemployment problem." Can you provide more details re your claim?
Just an example as to what is going on that is not being understood in full yet.
We all know about the massive oil Boom in Texas now I am sure. It is heading toward producing 2 million Barrels per day. Then we have North Dakota which is about to hit 1 million.
But this is just the start.
Oklahoma is pumping again in mass. Kansas is pumping. South Dakota and Wyoming are ready to pump like crazy too. In fact, there is massive oil and Natural gas in many other states as well. California comes to mind and it will soon start its boom.
BUT did you know that Pennsylvania and Illinois will go crazy producing oil and monster amounts of natural gas?
Potential energy benefits of Fracking in Illinois
The U.S. Energy Information Administration predicts that shale gas production will rise to 13.6 trillion cubic feet by 2035, which represents 45 percent of all natural gas production in the nation. Just one trillion cubic feet of natural gas is enough to heat 15 million homes for one year, generate 100 billion kilowatt hours of electricity or fuel 12 million natural-gas-fired vehicles for one year.
So you see---I think being short in the market is a bad idea.
Intel does have its troubles but it has so so much to gain as well.
I am confident that Intel will have a net income of 4 billion dollars or more in Q4 of 2014.
It is going to go much higher.