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Intel (INTC) slides 1% premarket as Piper Jaffray downgrades to Sell and trims its price target...

Intel (INTC) slides 1% premarket as Piper Jaffray downgrades to Sell and trims its price target by $1 to $20, citing weak PC demand and intense competition in processors.
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Comments (19)
  • Maciej Kedzierski
    , contributor
    Comments (23) | Send Message
     
    "Intense competition" in computer processors? With whom?
    7 Jun 2013, 07:44 AM Reply Like
  • Jeach!
    , contributor
    Comments (847) | Send Message
     
    @Maciej

     

    "weak PC demand and intense competition in processors."

     

    He probably means 'competition' in a general form, meaning that corporations have no need to upgrade and that Intel is competing with itself (a massive inventory of older chips, while trying to sell newer models).

     

    I'm sure AMD will become more aggressive in the future.

     

    And as for ARM, most don't see them entering the PC segments, but many others do... maybe he thinks so as well?
    7 Jun 2013, 11:02 AM Reply Like
  • txbadonetoo
    , contributor
    Comments (517) | Send Message
     
    Piper doesn't have the guts to compare recent and coming INTC products to ARM based or AMD based SOC's.. Again - in my opinion another Firm with a motive.
    7 Jun 2013, 07:54 AM Reply Like
  • mitchell530
    , contributor
    Comments (64) | Send Message
     
    Ashraf and Intel bull,

     

    Listen to what other say about Intel than what you think about. Piper Jaffray is a big house. Investors listen to them more than you folks here. Intel's processor is competing with other devices. No question about it.

     

    Short Intel, Piper Jaffray 's target $20, quite above current price
    7 Jun 2013, 08:03 AM Reply Like
  • Bryce_in_TX
    , contributor
    Comments (2860) | Send Message
     
    " Ashraf and Intel bull,

     

    Listen to what other say about Intel than what you think about."

     

    Analyst opinions at Fidelity Investments:

     

    4 Buy
    2 Outperform
    14 Neutral
    2 Underperform
    1 Sell (Piper Jaffray)

     

    I sure as heck would not be selling based on Piper Jaffray's opinion. Not when so many others do not recommend selling, much less shorting. Fidelity has a bullish 7.4 rating on Intel. The scales, based on 23 analyst opinions, weigh in favor of Intel. I am a bull. Long Intel.
    7 Jun 2013, 08:15 AM Reply Like
  • Jeach!
    , contributor
    Comments (847) | Send Message
     
    @Bryce

     

    Not listening to a firm or analyst is probably a smart move in general... but your other comment doesn't make any sense:

     

    "Not when so many others do not recommend selling"

     

    I don't know if you know this, but barely any firms will ever advise to 'sell' a stock. If you pile up all the recommendations on Wall Street for all the stocks of the S&P 500, you'll quickly realize that these firms rarely issue a sell recommendation.

     

    This is because these firms 'work for' the companies they advise on and no company will hire them if they have a sell recommendation on them. In the end, these analysts and their respective employers don't care about you and all the common investors... the large majority of their revenues come from the S&P 500 companies.
    7 Jun 2013, 11:07 AM Reply Like
  • Bryce_in_TX
    , contributor
    Comments (2860) | Send Message
     
    Jeach,

     

    Whatever. I don't care.
    7 Jun 2013, 11:26 AM Reply Like
  • Bryce_in_TX
    , contributor
    Comments (2860) | Send Message
     
    "I don't know if you know this, but barely any firms will ever advise to 'sell' a stock. If you pile up all the recommendations on Wall Street for all the stocks of the S&P 500, you'll quickly realize that these firms rarely issue a sell recommendation."

     

    Point taken about the wheel getting greased with revenue, so some will not issue a sell rating on stocks they receive revenue from. Yes, I understand that. On the few stocks I have researched at Fidelity, I have seen ratings all over the map. For example, Linn Energy (LINE), is rated very bearish, with a rating of 0.3. Intel's rating is 7.4.

     

    The ratings which Fidelity includes in its own rating come from independent research firms, which are defined as:

     

    "Independent firms are firms who derive no financial benefit from the nature of their recommendations.

     

    For the purposes of performance evaluation, Investars defines independent research as research produced by a firm that has no conflicts of interest in the following areas:

     

    Investment banking, where the research firm has investment banking operations or has had investment banking transactions within the past year
    Paid-for-research, where the research firm is paid by the covered company to issue research"

     

    By definition, the ratings Fidelity uses for its own rating do not include those firms who receive revenue from the company being rated. My statement you quoted was made in conjunction with the Fidelity rating, not in isolation of it. In rating Intel, Fidelity threw out one buy rating, 2 outperform ratings, 7 neutral ratings, and 2 underperform ratings because the companies were not considered independent. Piper Jaffry was not considered independent, btw.

     

    So, everything I stated was made in the context, and with the most weight being given, to Fidelity's rating.
    7 Jun 2013, 12:07 PM Reply Like
  • PhilosopherStone
    , contributor
    Comments (44) | Send Message
     
    The people at these brokerage houses don't yet fully understand how the technology works. We are at an age where we chase Apple because its shiny, most people don't understand what's under the hood. PC sales have slipped because everyone has one by now. Smartphone sales keep going up because not every American has one yet (I don't). Intel is now in the smartphone biz. I don't see any downside Everyone needs both a PC/laptop and a smartphone. Adults and business owners cannot get by with just a smartphone for their internet access. PCs will never go away. They are tied into how most businesses run today, especially at the enterprise level.
    7 Jun 2013, 09:15 AM Reply Like
  • Bryce_in_TX
    , contributor
    Comments (2860) | Send Message
     
    "Everyone needs both a PC/laptop and a smartphone"

     

    I don't need a smartphone with a $60 a month or more contract, no thanks. Never had one, probably never will. I have a cell phone from Virgin, no contract. Pay $25 every 3 months for myself and one for my wife. A lot cheaper and accomplishes what we need, mobile phone capability, without all the bells and whistles and added expense.

     

    I do desire full desktop power in a laptop, which I have in my Asus with an Intel dual core chip. Looking at another Asus currently and will be interested in the Haswell chips with much better battery power.

     

    Btw, do the non-Win tablets have the capability to run popular video/picture editing software and financial software such as Quicken? Just wondering. Those are apps I would think most folks would want. Why buy two products, one to do these tasks, another for entertainment, when you can get it all in one product? Seems like a waste of resources to me.

     

    Long Intel
    7 Jun 2013, 09:35 AM Reply Like
  • lucido3400
    , contributor
    Comments (55) | Send Message
     
    Imagine all the energy savings if the new chips are installed in 100dreds of millions PC's and Notebooks and Win 8 tablets. And if the computers run faster imagine the billions the companies can save because of enhanced productivity!
    7 Jun 2013, 10:10 AM Reply Like
  • DoowopDave
    , contributor
    Comments (225) | Send Message
     
    At $20.00, I'm in. Dividend = 4.5%. If Piper has some to sell for $20.00, I'll take as much as I can.
    7 Jun 2013, 11:31 AM Reply Like
  • pedika
    , contributor
    Comments (6) | Send Message
     
    Personally I have been negative about Intel for quite some time. Fortunately my SBMS has remained positive all through the last 20% increase and I have held my position. Yea good brokers.
    Pedika
    7 Jun 2013, 11:52 AM Reply Like
  • Michael Blair
    , contributor
    Comments (4807) | Send Message
     
    Never discount anyone's opinion. I am bullish on Intel but I recognize that many of the points Piper Jaffray is making are correct. Traditional PC's are in decline and Intel is exposed. Intel bulls like me are betting on three prospective trends: (1) Haswell will breath new life into PC's making ultra books and laptops more powerful and with longer battery lives (2) Intel will make meaningful inroads into mobile phones and tablets and (3) Intel will power not only Windows devices but also Android (as they have begun to do).

     

    If these emerge as pervasive trends Intel will make a lot of money. If not, Intel will continue to be profitable and pay reasonable dividends. It is not like it has a 30 multiple and a lot has to go right. It just needs a bit of a tailwind and I believe it has one.
    7 Jun 2013, 12:17 PM Reply Like
  • Eassa
    , contributor
    Comments (200) | Send Message
     
    Isn't it interesting that the so-called analysts are orchestrating a downgrade storm right after Computex? Hmmm. They downgrade Intel on design wins all over the place. If these guys don't have an agenda, then I'm Donald Duck.

     

    After tumbling pre-market, Intel is now up. Shows how little these idiots know.

     

    --Sam
    7 Jun 2013, 01:00 PM Reply Like
  • rlbauer
    , contributor
    Comments (4) | Send Message
     
    long INTC
    7 Jun 2013, 01:43 PM Reply Like
  • youngdividend
    , contributor
    Comments (55) | Send Message
     
    They said Intel couldn't do it, number one, yeah they knew it!

     

    Long INTC
    7 Jun 2013, 06:18 PM Reply Like
  • rlbauer
    , contributor
    Comments (4) | Send Message
     
    The Shocking Truth About Wall Street Stock Recommendations

     

    http://bit.ly/13R3GV4
    10 Jun 2013, 03:06 AM Reply Like
  • cwisehart
    , contributor
    Comment (1) | Send Message
     
    My comment criticising Piper Jaffray's downgrade was rejected as off topic with a threat to bane my participation should I continue. Still, INTC is above $26 this 16th of January and their price target of $20 made in June last year is clearly off target.
    16 Jan, 12:08 PM Reply Like
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