Price Performance
|
Period
|
Actual(%)
|
vs.
S&P 500(%)
|
In
Industry
|
Industry
Rank
|
4 Week
|
-2.8
|
-3.4
|
22
|
68
|
13 Week
|
-12.4
|
-15.7
|
7
|
42
|
26 Week
|
-17.7
|
-25.9
|
6
|
65
|
52 Week
|
-18.0
|
-27.9
|
11
|
70
|
YTD
|
-23.6
|
-27.3
|
3
|
62
|
Note: Rank is a Percentile that Ranges from 0 to 99, with 99 = Best
|
Price History
|
Calendar Year
|
2005
|
2004
|
2003
|
2002
|
2001
|
High Price
|
28.84
|
34.60
|
34.51
|
36.78
|
38.59
|
Low Price
|
21.89
|
19.64
|
14.88
|
12.95
|
18.96
|
Year End Price
|
24.96
|
23.39
|
32.05
|
15.57
|
31.45
|
High P/E
|
20.57
|
29.90
|
40.50
|
79.78
|
205.29
|
Low P/E
|
15.61
|
16.97
|
17.46
|
28.09
|
100.85
|
Year End P/E
|
17.80
|
20.22
|
37.62
|
33.77
|
167.29
|
Dividend Yield
|
1.28
|
0.68
|
0.25
|
0.51
|
0.25
|
|
X. Other Considerations
Top Institutional Holders
TOP INSTITUTIONAL HOLDERS
|
Holder
|
Shares
|
% Out
|
Value*
|
Reported
|
Barclays Global Investors UK Holdings Ltd
|
302,086,261
|
5.13
|
$7,540,073,074
|
31-Dec-05
|
FMR CORPORATION (FIDELITY MANAGEMENT & RESEARCH CORP)
|
212,412,294
|
3.61
|
$5,301,810,858
|
31-Dec-05
|
STATE STREET CORPORATION
|
191,841,538
|
3.26
|
$4,788,364,788
|
31-Dec-05
|
VANGUARD GROUP, INC. (THE)
|
143,083,848
|
2.43
|
$3,571,372,846
|
31-Dec-05
|
Mellon Financial Corporation
|
96,683,302
|
1.64
|
$2,413,215,217
|
31-Dec-05
|
NORTHERN TRUST CORPORATION
|
86,714,251
|
1.47
|
$2,164,387,704
|
31-Dec-05
|
LEGG MASON INC.
|
75,182,003
|
1.28
|
$1,876,542,794
|
31-Dec-05
|
DEUTSCHE BANK AKTIENGESELLSCHAFT
|
71,262,997
|
1.21
|
$1,778,724,405
|
31-Dec-05
|
TIAA-CREF INVESTMENT MANAGEMENT, LLC
|
54,967,488
|
.93
|
$1,371,988,500
|
31-Dec-05
|
PRICE (T.ROWE) ASSOCIATES
|
54,383,520
|
.92
|
$1,357,412,659
|
31-Dec-05
|
|
Top Mutual Fund Holders
Holder
|
Shares
|
% Out
|
Value*
|
Reported
|
VANGUARD 500 INDEX FUND
|
57,421,370
|
.98
|
$1,433,237,395
|
31-Dec-05
|
COLLEGE RETIREMENT EQUITIES FUND-STOCK ACCOUNT
|
40,619,485
|
.69
|
$1,013,862,345
|
31-Dec-05
|
VANGUARD INSTITUTIONAL INDEX FUND-INSTITUTIONAL INDEX FD
|
29,995,764
|
.51
|
$748,694,269
|
31-Dec-05
|
VANGUARD TOTAL STOCK MARKET INDEX FUND
|
27,724,775
|
.47
|
$692,010,384
|
31-Dec-05
|
SPDR TRUST SERIES 1
|
25,853,165
|
.44
|
$637,280,517
|
30-Sep-05
|
AMERICAN BALANCED FUND
|
20,950,000
|
.36
|
$522,912,000
|
31-Dec-05
|
FIDELITY EQUITY-INCOME II, FUND
|
17,020,100
|
.29
|
$454,096,268
|
30-Nov-05
|
VANGUARD/PRIMECAP FUND
|
16,525,000
|
.28
|
$412,464,000
|
31-Dec-05
|
FIDELITY GROWTH & INCOME PORTFOLIO
|
15,979,300
|
.27
|
$339,719,918
|
31-Jan-06
|
WASHINGTON MUTUAL INVESTORS FUND
|
12,450,000
|
.21
|
$310,752,000
|
31-Dec-05
|
|
Major Holders – http://finance.yahoo.com
CDA/Investment Insider Buying and Selling Activity (000's) as of 10/08/01
|
Insider Activity Chart
|
Insider
|
Shares Traded
|
Date
|
Price
|
|
BAKER ROBERT JAYMES
|
64,000
|
04/07/06
|
7.67
|
|
OTELLINI PAUL S
|
192,000
|
03/14/06
|
NA
|
|
OTELLINI PAUL S
|
(1,600)
|
03/14/06
|
19.66
|
|
OTELLINI PAUL S
|
(1,200)
|
03/14/06
|
19.68
|
|
OTELLINI PAUL S
|
(600)
|
03/14/06
|
19.67
|
|
OTELLINI PAUL S
|
(9,000)
|
03/14/06
|
19.71
|
|
OTELLINI PAUL S
|
(6,100)
|
03/14/06
|
19.73
|
|
OTELLINI PAUL S
|
(14,150)
|
03/14/06
|
19.75
|
|
OTELLINI PAUL S
|
(21,100)
|
03/14/06
|
19.77
|
|
OTELLINI PAUL S
|
(7,939)
|
03/14/06
|
19.79
|
|
OTELLINI PAUL S
|
(24,203)
|
03/14/06
|
19.78
|
|
OTELLINI PAUL S
|
(5,458)
|
03/14/06
|
19.85
|
|
OTELLINI PAUL S
|
(8,858)
|
03/14/06
|
19.88
|
|
OTELLINI PAUL S
|
(12,700)
|
03/14/06
|
19.87
|
|
OTELLINI PAUL S
|
(4,419)
|
03/14/06
|
19.86
|
|
OTELLINI PAUL S
|
(9,600)
|
03/14/06
|
19.84
|
|
OTELLINI PAUL S
|
(8,575)
|
03/14/06
|
19.83
|
|
OTELLINI PAUL S
|
(16,900)
|
03/14/06
|
19.82
|
|
OTELLINI PAUL S
|
(7,450)
|
03/14/06
|
19.81
|
|
OTELLINI PAUL S
|
192,000
|
03/14/06
|
7.67
|
|
OTELLINI PAUL S
|
(7,548)
|
03/14/06
|
19.8
|
|
OTELLINI PAUL S
|
(6,400)
|
03/14/06
|
19.76
|
|
OTELLINI PAUL S
|
(5,300)
|
03/14/06
|
19.74
|
|
OTELLINI PAUL S
|
(5,900)
|
03/14/06
|
19.72
|
|
OTELLINI PAUL S
|
(2,200)
|
03/14/06
|
19.7
|
|
OTELLINI PAUL S
|
(4,800)
|
03/14/06
|
19.69
|
|
BARRETT CRAIG R
|
100,000*
|
02/06/06
|
0
|
|
CHANDRASEKER ANAND
|
13,200
|
02/02/06
|
NA
|
|
CHANDRASEKER ANAND
|
13,200
|
02/02/06
|
7.67
|
|
CHANDRASEKER ANAND
|
(13,200)
|
02/02/06
|
21.22
|
|
KILROY THOMAS M
|
20,725
|
02/01/06
|
NA
|
|
BARRETT CRAIG R
|
384,000
|
01/30/06
|
7.67
|
|
BARRETT CRAIG R
|
(284,000)
|
01/30/06
|
21.64
|
|
PLUMMER JAMES D
|
2,000
|
01/23/06
|
21.33
|
|
HUNDT REED E
|
500
|
01/20/06
|
22.21
|
|
BAKER ROBERT JAYMES
|
194,571
|
12/12/05
|
NA
|
|
BAKER ROBERT JAYMES
|
(194,571)
|
12/12/05
|
26.62
|
|
BARSHEFSKY CHARLENE
|
1,400*
|
12/12/05
|
26.62
|
|
SEWELL DURWARD BRUCE
|
1,031
|
12/12/05
|
NA
|
|
SEWELL DURWARD BRUCE
|
(1,031)
|
12/12/05
|
26.72
|
|
SHAW JANE E
|
24,000
|
12/12/05
|
NA
|
|
SHAW JANE E
|
(24,000)*
|
12/12/05
|
26.49
|
|
SHAW JANE E
|
40,000*
|
12/12/05
|
8.7
|
|
YOFFIE DAVID B
|
25,000
|
12/12/05
|
NA
|
|
YOFFIE DAVID B
|
(25,000)
|
12/12/05
|
26.55
|
|
YOFFIE DAVID B
|
40,000
|
12/12/05
|
8.7
|
|
GELSINGER PATRICK P
|
(1,800)*
|
08/01/05
|
27.45
|
|
GELSINGER PATRICK P
|
(1,800)*
|
08/01/05
|
27.45
|
|
GELSINGER PATRICK P
|
(1,800)*
|
08/01/05
|
27.45
|
|
GELSINGER PATRICK P
|
(1,800)*
|
08/01/05
|
27.45
|
|
HOLT WILLIAM M
|
22,400
|
07/28/05
|
NA
|
|
HOLT WILLIAM M
|
(22,400)
|
07/28/05
|
27.25
|
|
HOLT WILLIAM M
|
22,400
|
07/28/05
|
17.42
|
|
SEWELL DURWARD BRUCE
|
32,078
|
07/28/05
|
NA
|
|
SEWELL DURWARD BRUCE
|
(7,339)
|
07/28/05
|
27.32
|
|
SEWELL DURWARD BRUCE
|
7,339
|
07/28/05
|
20.23
|
|
SEWELL DURWARD BRUCE
|
(7,339)
|
07/28/05
|
27.32
|
|
SEWELL DURWARD BRUCE
|
7,339
|
07/28/05
|
20.23
|
|
SEWELL DURWARD BRUCE
|
(14,400)
|
07/28/05
|
27.32
|
|
SEWELL DURWARD BRUCE
|
14,400
|
07/28/05
|
19
|
|
SEWELL DURWARD BRUCE
|
(3,000)
|
07/28/05
|
27.32
|
|
SEWELL DURWARD BRUCE
|
3,000
|
07/28/05
|
17.42
|
|
HOLT CHRISTOPHER
|
601
|
07/26/05
|
NA
|
|
BROWNE EDMUND JOHN PHILLIP
|
20,000
|
07/22/05
|
20.45
|
|
BROWNE EDMUND JOHN PHILLIP
|
(15,800)
|
07/22/05
|
26.98
|
|
BROWNE EDMUND JOHN PHILLIP
|
20,000
|
07/22/05
|
19.48
|
|
BROWNE EDMUND JOHN PHILLIP
|
(15,800)
|
07/22/05
|
26.98
|
|
BRYANT ANDY D
|
360,000
|
07/21/05
|
NA
|
|
BRYANT ANDY D
|
400,000
|
07/21/05
|
7.56
|
|
BRYANT ANDY D
|
(360,000)
|
07/21/05
|
27.1
|
|
GELSINGER PATRICK P
|
75,000
|
07/21/05
|
NA
|
|
GELSINGER PATRICK P
|
(75,000)
|
07/21/05
|
27.24
|
|
GELSINGER PATRICK P
|
75,000
|
07/21/05
|
11.93
|
|
HUNDT REED E
|
500
|
07/21/05
|
27.54
|
|
JOSIAH GELSINGER TRUST
|
1,800
|
07/21/05
|
NA
|
|
PLUMMER JAMES D
|
(1,000)
|
06/27/05
|
30
|
|
GUZY D JAMES SR
|
80,000
|
05/05/05
|
NA
|
|
GUZY D JAMES SR
|
(80,000)
|
05/05/05
|
24.29
|
|
GELSINGER PATRICK P
|
75,000
|
04/29/05
|
11.93
|
|
GELSINGER PATRICK P
|
(75,000)
|
04/29/05
|
23.45
|
|
GUZY D JAMES SR
|
80,000
|
04/26/05
|
6.42
|
|
XI. Conclusion
Intel is a dominant leader in the semi-conductor industry. Despite slowing demand of PC consumption, Intel has managed to keep its gross profit margin above 54%, which is far higher than most of its competitors. Though, AMD inched past Intel with a higher gross profit the first quarter in 06. However, Intel has significant levels of inventory and company executives have hinted to price cuts. If Intel is able to unload a lot of its inventory at reduced costs, the gross profit margin will raise since the costs of that inventory have been expensed. Also, Intel has a much larger cash balance and is able to continuously spend money on R&D and new plants, a short fall of AMD. Not only does Intel have more cash on hand, but AMD is also highly levered with a D/E of nearly 70 compared to a D/E of 33% for Intel. AMD might be taking on too much than it can handle in order to compute with Intel and might not be able to pay its obligations if more debt is required.
Earnings in the first quarter are down, but the company has also refigured their estimates for 06. Meaning, Intel might be able to still top earnings estimates. If enough inventories are sold, Intel can make up small decreases in sales due to the high price of oil. Yet, some investors might not be able to stomach holding Intel with a Beta of 1.5. Since the beta is over 1, Intel is riskier to hold than an S&P index.
Recommendation
Analyst are still predicting growth at 15% for the next five years, and with Intel being very undervalued compared to its competitors, with respect to P/E, it is hard to believe that Intel’s stock will continue to be battered. With the addition of Apple, new factories, and joint ventures, Intel still holds the dominant position in its industry.
The stock took a huge hit when Intel missed earnings, and another hit when the company revised their earnings estimates for 06. Intel is trading near its 52 week low, and has been trading below $20/share since the beginning of March.
Based on the two valuation techniques used and the many opportunities Intel continues to create, a strong buy is recommended. Intel is trades at a very low multiple compared to its peers and with its stock price hovering near 52 week low, there is little downside risk relative to the upside potential Intel offers.
Finance Resources
Online
Finance Google (finance.google.com)
Finance Yahoo (finance.yahoo.com)
Reuters (www.reuters.com)
Intel (www.intel.com)
Wall Street Journal (WSJ.com)
Business Wire (Businesswire.com)
Databases
Factiva
Business and Company Resource Center
Disclaimer: This analysis does not necessarily reflect the beliefs of the University of Missouri-Columbia or the College of Business. The insights and opinions are of the students of Investment Funds Management and should not be used in personal investment decisions. The University of Missouri and the authors of this analysis take no responsibility for the validity of the valuation and analysis.  
Share with your friends: |
