Does anyone out there have a well reasoned, TA or other analytical basis, as to where if anywhere this stock is heading?
The failure to participate even marginally in the rally is unsettling. Are we due for a move? If so, in which direction? The financial reporters on CNBC, CNNFN, etc. have nothing good to say about INTC.
Anybody have any input????
More expenseive chip??? Higher margin. That sounds okay, but at least in the near future the public is being inundated with
sub money computer propoganda. When a 266 mgh pentium II system with monitor can be had for under 1500 why do you think people
will rush out to plunk down 3500 for a new chip set cpu with intel inside??? Short term this will further widen the gap between
the consumer and the company. Also, name three 64 bit programs for the everyday Joe out there on the market or even near being
on the market. Maybe a few games will strike early, but 3500 for game playing? Not in my house or anyone else I know.
Think on this -- those people that want the added performance will wait. They have already purchased the 266 or even a 200 and won't jusify the new expense for at least 1 or maybe even 2 years at best. Market penetration is being made with the "supermarket" computers at 1000 bucks in families that could never afford one before. They won't "up" to the 3500 dollar system. Too pricey. The new chip may sit in the channel and the margins you look for will be illusory.
True, you want the power, you have to pay the price. But at $2k-$3k a pop every two years is a lot for an ordinary family.
Not everyone in this country is making silicon valley engineering denero. I would not want to spent $2k-$3k every two years and
see my computer investments going down the tube (which is what everyone's PC is doing right at this moment). $500 PC for basic
word processing, e-mail (although probably slow depending on modem speed), and other stuff is probably enough for any regular
user. Slow PC? Try driving down HWY 101 here in silicon valley during rush hour.
When you go into your local PC retailer, what's being sold? The $500-$1,000 PC? I don't think so. Once you see the performance of these sub sub PC's, buyers start shopping for power and price. Ask Dell?
I do believe that it is the software industry that really needs to clean its own act. True that the $500/PC will hurt the
hardware industry but I do think that the competition has forced hardware companies to come up with a better yeild or else. INTC will
survive just as much as CSCO. I do not think AMD and co. will do much damage to INTC just like what COMS and co. will do to CSCO.
COMS and co. have come out with IP switching that would topple the routing business due to its quick transfer of data but that
does not hamper CSCO. Likewise, AMD's new tech (if any) will probably not make a big dent on INTC. Maybe this is not a good
analogy but this is one of the thing which I can come up with to justify INTC's dominance.
That's my point, it doesn't make sense but that's the reality.
Have you ever driven a $25000 car, insured at 1000/year, and burned a gallon of gas to pick up a six pack of beer. Investors in stocks are probably too much into ROI than people in real life. Big reason why I think the "cheap PC" phenomenon is a big disaster pimple on a teenager face of the PC industry. Bit of time will fix it.
This stock will not move for the next 3-4 months. You should take advantage of the drop in all major tech stocks to get in somewhere else. That is assuming you are in the +ve on this stock. In the least that is how it looks going by the sentiments.