Intel (INTC)

Peaks around this time of year. January until spring it underperforms. It is a good time to take profits and move to sectors that do well this time of year.

Coming out with more chip products. 40% model price differential. 30-40% upside. 2.6% yield.

A very, very good business. Free cash flow generation is very strong and the computer cycle was better than anticipated in 2014. Thinks it will be a sound business still in 2015. A great alternative for people looking for fixed income. It will be challenged to grow going forward however.

The undisputed leader in semiconductors. Many would say they are 3 years ahead of their competition when it comes to manufacturing technology, and they are accelerating their pace of innovation. Somewhat economically sensitive. Dominant in data centres, which has rapidly growing revenues. PC market seems to be stabilizing. Will probably grow 10%-12% a year going forward. They’re returning cash to shareholders by buying back shares and raising their dividend. It will grow its dividend at 15% per year. Yield of 2.64%.

Largest chip manufacturer globally. Has always tended to have cyclical earnings. Earnings have had a very nice run. Wouldn't want to be buying it here because if you look at the last 20 years, earnings can move up and down very significantly. You need to buy this when the gross margins are dropping a bit and earnings are down sharply. This will happen as it does in every cycle.

(A Top Pick Oct 8/13. Up 60.79%.) Hit his target so he sold his holdings at around $27-$28. We do have a good PC upgrade cycle and they do seem to be doing things well in the mobile market, but there are rumours that they are paying people to use their chips.

(A Top Pick Sept 6/13. Up 50.73%.) He liked it because people were overly pessimistic. It was paying a good dividend. Financially strong. They are fixing the problem now. It is a lower margin product. Got to a level that he thought was pretty reasonable, and he Sold his holdings.

This is a stock that has broken out from a long-term trend. Had fallen into the category of old tech. This one is up over 30% year to date. Not overly cheap. Trading at a forward PE multiple of over 16X. Had a big run, so wouldn’t run after it here. If you own, consider taking some profits.

Great company. Generates a lot of free cash flow. Thinks there are better technology names out there for his clients. 2.6% dividend yield. Prefers Qualcomm (QCOM-Q).

They have resources. They used to be the leader in the PC market. They have a $12 billion capital expenditure budget. It is one to keep an eye on.

Close to the target price of the general consensus of $27-$28. Had a nice little bounce off the bottom. 62% of revenues are from the PC market, which is going through a sector decline right now. As economies and corporate profits improve, they are going to have to go through a normal PC replacement cycle. One short-term catalyst that is working in their favour is where Windows XP has stopped being supported, and there are still about 27% PCs being run on that, so you might see a natural upgrade cycle. Not cheap at 14X forward earnings, and earnings growth is mid-single digit. If you own, consider taking some profits.

Huge value in these names. Maybe we get a normal market where money actually stays in the market, but it rotates through value. Model price is $37.73, a 50% upside to its current price. 3.4% dividend yield.

Recently sold his holdings. They came out with some pretty disappointing guidance. Thinks they will turn the corner here. They are investing a huge amount of money in research and development. They are investing more money every year than what their major competitor ARM Holding (ARMH-Q) is worth. PC shipment business has been tough. Having some difficulty in the new lines of business. They have been expanding into. Likes the 3.7% dividend which he feels is secure. Good balance sheet. Feels their movement into chips for the cell phone business will be successful but is a lower margin business.

(Market Call Minute.) It might have some promise. Spending a lot of money. They’re a big company and have a big CapX program but are not really growing their revenues.

His model price for today is $36, a 51% upside. A year from now it is almost $40. Lots of upside. Yield of 3.77%. The trouble with all of these large-cap techs is that they have a lot of value, but are just sitting there.