I think the problem with Intel is that investors and analysts take an overly simplistic approach to valuing INTC. Very much the common thinking is that INTC is totally tied to the desktop PC market. PC sales don't really look too hot and so folks are bashing INTC based on that outlook alone. Although INTC derives a good portion of its profits from PC sales they are into other sources of revenue. I think most drive by analysts can't see past that. Now folks are starting to see that INTC has other ways to make money not just PC sales so they can see a path for better earnings growth. The ALTR announcement was just part of that. Folks are still overly dismissive of INTC initiatives in the mobile chip space. Right now I think they are very small in that space but 2-3 years out I can see them with half the market. By the end of the year they will be very much noticing that and bidding up the shares.
"Although INTC derives a good portion of its profits from PC sales they are into other sources of revenue."
Intel can leverage huge CPU volume towards SoC - that's why Intel SoCs will be (more than) cost competitive.
It's all about fix cost that require volume - this is really no "rocket science" but analysts seem to be slow getting it
There is a lot of hype in the ARM camp about matching Intels TriGate technology.
ALTR is one of leading FPGA companies that depends heavily on advanced manufacturing technology.
Bohr always emphazised Intels leadership but
this is the first time a third party (ALTR) basically said TSMC FF won't cut it.
Analysts that used to mock about Intel's manufacturing lead received a wake up call
The short interest has been increasing about 1mil shares per day since Intel started dropping from $29. It is hard to absorb 1mil extra shares per day short for 6 months and behave normally. The short information for the last half of Feb (released late on 3/11) will be interesting. I want to see if the shorts are still active or covering.
I think the share buyback was designed to SHAPE THE CHART so the shares could be bought back but the most value would be to make the TECHNICAL CHART attractive to the chart readers. The buyback is nibbling on the bid line and making it so buyers have to hit the ASK in order to get all the shares they want.
You probably have the short sellers still pushing down on the stock but there are now buyers.
The analyst "SELL or UNDERPERFORM" reiterations have nearly vanished. Romit Shah finally stopped. He has not chimed in on any of the recent Intel news. From June 2011 through Jan 2013, he would reiterate his SELL and lower target every time there was news on Intel.