Did you remember how the INTC was telling you how great things were and you immediately went out to buy some Tech stocks ?
winston wrote:Intel posts biggest quarterly profit in a decade (AP)
While its recent 2Q10 numbers did come in above expectations, the more pertinent issue would be its guidance for 3Q10.
This also turned out to be above market forecasts, where Intel is guiding for revenue of US$11.2 – 12b as compared to expectations of US$10.9b. Given this bullish outlook which in turn speaks well of the macro picture, we thus maintain our OVERWEIGHT recommendation on the technology sector.
And after only 3 months, they are telling you that they cant meet expectation. Listen to these cheer-leaders at your own risk...
Intel warns of sales shortfall By Noel Randewich and Franklin Paul
SAN FRANCISCO/NEW YORK (Reuters) - Intel Corp warned that
third-quarter revenue could fall short of its own estimates by more than $1 billion, reinforcing doubts about the strength of a technology sector recovery.
Baird & Co analyst Tristan Gerra expects weakness to persist over several quarters before demand bounces back in the
second half of 2011, but warned of a longer-term threat from tablets like Apple Inc's iPad replacing PCs.
"That trend will continue in Q1 until we fix the inventory issues in the second," he said. But "there's going to be more challenges for Intel next year, even if the market eventually picks up."
Other analysts pointed to a silver lining: Intel said
resilient corporate demand was helping prop up average prices even though
consumer demand in mature markets was weaker than expected.
"Even though the news is bad, the bad news is already in the valuation. Obviously, business isn't going great there, but
the stock is so cheap this doesn't matter," said Stephen Massocca, managing director at Wedbush Morgan.
Intel now expects third-quarter revenue of $10.8 billion to $11.2 billion, down from a previous forecast of $11.2 billion to $12.0 billion and below analysts' average expectation of $11.5 billion, according to Thomson Reuters I/B/E/S.
"People were relieved it was not worse," said Avian securities analyst Dunham Winoto.
Intel now sees gross margins in the period of 65 to 67 percent. It had previously forecast gross margins of 67 percent, plus or minus a couple of points -- near a record high for the company.
"The big news is
enterprise and server demand is holding up. And Intel still expects to grow (revenue) and gross margins also," said JMP Securities analyst Alex Gauna.
http://www.reuters.com/article/idUSTRE6 ... Name=usdai
It's all about "how much you made when you were right" & "how little you lost when you were wrong"