Intel (INTC)

They have wind in their face because their business was the PC business and they got left behind in the evolution to tablets. With their size and resources, they have an opportunity to catch up. They are doing some impressive things right now. There are a lot of unknowns but there is an opportunity that is not fully priced in. Would buy when there is better certainty.

Model prices $35.52, a 56.5% upside. Yield of about 4%.

Advanced Micro (AMD-N) versus Intel (INTC-Q)? Intel is obviously the gorilla in this space with their 10%-15% marginal share. If she had to choose between the 2, she would pick Intel because they have much more 80+ share. They will participate more if we see the PC market start to improve. Would wait as there is not a rush to buy anything, especially with the general volatility in the market. With rising rates, the whole market could pull back.

Big dividend. This is one of the sectors that will return the most capital back to investors. This one will and will benefit from the trend into mobile devices. Until earnings come out, there is a lot of speculation around this stock. The recent 4% pull back makes it a decent time to enter the stock. He wants to see the numbers before buying.

Great US technology giant. There is talk about Intel TV which could be coming in the future. Good valuation. Being a chip manufacturer, they have less control of their pricing.

(Market Call Minute.) Has a real headwind. PC demand is falling faster than people thought. Thinks they are scrambling to become a supplier to tablets. Doesn’t have a leadership position at this time.

This would be an entry point for a 9-15 month holding period. Company has suffered because it does not have leverage to the mobile market. We are clearly seeing a transition from desktop to the mobile and that is going to play out over a longer period of time. This company is very good at “catching up”. Still one of the best chipmakers that is out there. Have recently launched a mobile and have a new product Haswell for ultra books. Expectations are fairly low for them but looking at the company longer-term, they can overcome that and you are getting paid to be in the stock.

A report on PC sales indicated they were the worst since 1994. Technology stocks normally do very well from October through until January but then take a bit of a hiatus. Then in the middle of April, stocks like this tend to pick up again. Chart shows this is forming a nice pattern and starting to trend higher, above its 22 moving average and outperforming the S&P 500. Good opportunity.

(A Past Pick. April 5/12. Down 20.44%.) Got stopped out of this last summer.

An issue he has had with this company is that their products go into other people’s products so they don’t control the customer per se. They are looking at things where the can get more exposure with the end customer. Reasonable valuation. Well managed. Wouldn’t be his 1^st choice on the technology side.

Trading at about 11X earnings with probably a high single digit, low double-digit long-term growth rate. Thinks the overall industry is in transition. How are tablets and mobile devices going to affect total PC growth? Thinks it will perform in line with the industry in the tech sector but not much better. Would prefer others.

Like Cisco (CSCO-Q) and has to do the mature transition story. If they are able to actually penetrate the mobile phone market, it will be a long-term story. If it doesn’t, then it has to put its bets on the server market. Very good dividend. Rock solid balance sheet but there is a lot of concern around its ability to replace the PC market. This is worth waiting for to see how it turns out.

They were the leader in terms of chips in the PC world. The transformation from a PC world to a mobility world is happening faster than anyone really expected. The new leader is Qualcomm (QCOM-Q) which has the chip market for the tablet, mobile devices and smart phones. If you own, consider Qualcomm as a replacement.

Granddaddy of desk top business. Concern is that it is not leveraged enough to mobile phone market. Made a major acquisition last year and dominates server business and will take a share in the mobile market in the future. Solid and safe and good balance sheet. It is not the growth story it used to be.

Introduced a new chip, Adam, early this year. (Low keyed micro processor chips). They’ve only got 7% share, which will only make about 2% of their bottom line but the neighbourhood is changing and they are doing their best to try to come back and get into that really fast growing mobile, smart phone area. Juicy dividend of 4.25 %. Could be an interesting Buy here.