Did Russ Fisher stumble on the reason for the big buy back and the urgency associated with it. I'm talking about the 4 billion buyback this qtr and 4 billion next qtr. Is INTC planning on depreciation being added to the bottom line? Are they planning on cutting Capex to 5 billion per year and announcing it in Nov? after all IBM is spending a whopping 3 billion in the next 5 years and they have a 2 node lead. If so, that alone would add $1.00/ share to the earnings. With respect to mobile, they should be at breakeven in 2015, thus adding 4 billion or $0.80/ share. Then you have contra coming to a close adding who knows how much to the bottom line. Looking at a free $2.00+/ share plus growth, and it makes sense why INTC is buying back big and with a sense of urgency.
Near term, look at the July 34 with 19,700 calls today, July 36 with 35,400 calls today. Sept with 9800 calls today at 34 and Sept. 36 calls at 35,400 for today.
With INTC planning to use 4 billion for buying back shares in the 3rd qtr. This translates into buying 1.75 million shares every day the exchange is open at 35/share average. This translates into approx. 2% of the shares bought back this qtr. Do this next qtr too and another 2% get bought back. Add the 170 million shorts who are under water and you have a great recipe for this stock going much higher. Not to mention the higher margins, higher top and bottom lines, INTC guiding higher, depreciation being reduced and increasing marging, etc.
Last 10 year PE for INTC was around 22. Were only at 16 with a great pipe line. Dow, Nasdaq, & S&P are all at supporting PE's. Add a 3% div vs 2% for most tech and we have a long way to run. Almost forgot the 188 million short shares that need to cover with an increased 20 billion buyback and 4 billion buyback in 3rd qtr.
Let me get this straight. Flickenstein, the perma bear says that the market is going to go down sometime and were supposed to get scared and run. Now it he said is was going up, I might take notice.
Interesting how IBM is making a 3 billion investment over the next 5 years and should be taken seriously. INTC on the other hand spends 10 billion per year and they don't get the time of day. What part of this doesn't make sense? I'd say all of the Forbe's article.
AP) BAGHDAD - Iraq's government spokesman says Saddam Hussein's notorious cousin "Chemical Ali" was executed Monday about a week after being sentenced to death for the poison gas attacks that killed more than 5,000 Kurds in 1988.
News of the hanging came shortly after three suicide car bombs struck downtown Baghdad. It was not immediately clear whether the attacks were linked the execution of Ali Hassan al-Majid.
Government spokesman Ali al-Dabbagh confirmed the execution took place.
Al-Majid -- widely known as "Chemical Ali" for the gas attacks -- was convicted on Sunday for ordering the poison gas to be dropped on the Kurdish town of Halabja in 1988 as part of a campaign against a Kurdish uprising.
It was the fourth death sentence against him for crimes against humanity.
"a WMD is a nuke or chemical weapon". It appears by your own admittion that Bush didn't lie. they had chemical weapons.
Tell me O great one - What is a WMD? Boston marathon says a pressure cooker is a WMD. Chemical Ali gassed 10,000 because they tried to kill Sadam and wouldn't tell who did it, was that a WMD? Syria uses chemical weapons with impunity. The Dem's say a semi automatic rifle or pistol is a weapon of mass destruction. When you clowns get your deffination of WMD defined, come back and maybe we can have an intelligent discussion.