Intel

Welcome back to the Invest Club blog! Today's company is Intel (INTC). Intel is a tech company that focuses on digital platforms and processes, and produces chips such as the currently popular i3, i5, and i7. Intel was established in 1968 and is currently headed by Paul Otellini. This company drives further the advancements in computing by producing smaller, faster, and more efficient hardware for desktops, laptops, mobile phones, and tablets alike. Intel saw slight growth on the Stock Market until 1999-2001 when it experienced a tremendous surge upwards followed by a sharp decrease by 75% from the previous year in 2002. If you have been reading some of the other posts on this blog, you may have noticed a continuing trend with most companies we evaluate - this 1999-2001 scenario affects everyone, but not to worry, we are covering this topic tomorrow! We will find out what exactly happened and why everything changed suddenly. Back to Intel: we analyzed the last few weeks on the market and found some interesting figures. On October 8th, Intel announced plans to lay off 7100 employees. Stocks that day opened $0.40 lower than the previous day's close. Just a week later, Intel released its 3rd Quarter Income Statement, which showed profits that surpassed expectations, but that were unfortunately still below original predictions and a whooping 5% lower than than last FY's 3D. It is fair to say that Intel is not headed on the brightest path with such results. Further, analysts expect Intel to lose even more revenue due to the laptop to tablet transition, still a jejune world to this company. We advised our members on Tuesday to avoid investment in Intel, considering the disappointing income statement and the inability to stay on schedule with the growing technological world, and our simulated investments back our predictions. We purchased shares priced at $22.62, which closed on Friday with a price of $22.06. Intel simply is not in a state that is optimal for investing, and, in our point of view, we would set a 'neutral' status.
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