Intel miss

I have been looking to get into Intel recently but have been waiting for my Microsoft shares to reach the right sell price ($28 would be nice.) I am glad that I waited: last night Intel missed expectations quite thoroughly and the stock is down almost 10%. To quote one of the misses, revenue was $10.2 billion rather than $10.5 billion.

So is this a buying opportunity? Ha ha probably not judging by my luck with buying after a bad report with eBay, Verisign and Vodafone. They all remained well below my buy price for at least 2 months.

Fundamentals do start to look attractive with the SP at $23 though - a forward PE of 14 is quite hard to find for a company of the quality of Intel. The yield will now be closer to 2% than 1% and share buybacks continue.

However forecast revenue growth of 6 to 9% for 2006 is disappointing, especially when analysts are forecasting 15% growth for the next 5 years.

Intel deserves more analysis. My rule now is to wait at least 2 weeks before buying after a bad earnings. This should allow the SP to finish the bulk of its re-adjustment.

AMD and TI will probably go down in sympathy to INTC and the real opportunity may be there.