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Company name Intel Corporation
Stock ticker INTC
Live stock price [stckqut]INTC[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Fair
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $16.31
Target stock price (averages with growth) $24.74
Target stock price (averages with no growth) $27.2
Target stock price (manual assumptions) $17.76

The following company description is from Google Finance: http://www.google.com/finance?q=intc

Intel Corporation designs and manufactures integrated digital technology platforms. A platform consists of a microprocessor and chipset. The Company sells these platforms primarily to original equipment manufacturers (OEMs), original design manufacturers (ODMs), and industrial and communications equipment manufacturers in the computing and communications industries. The Company’s platforms are used in a range of applications, such as personal computers (PCs) (including Ultrabook systems), data centers, tablets, smartphones, automobiles, automated factory systems and medical devices. On February 2012, QLogic Corp. sold the product lines and certain assets associated with its InfiniBand business to the Company. In May 2012, Cray Inc. completed the sale of its interconnect hardware development program and related intellectual property to the Company. In September 2012, InterDigital, Inc.’s subsidiaries sold around 1,700 patents and patent applications to the Company.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good, in fact the company ranks as a Good company, but there are some concerns with the price of the stock and overall growth.  I will not be adding this stock to my Watch List.

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Company name Intel Corporation
Stock ticker INTC
Live stock price [stckqut]INTC[/stckqut]
P/E compared to competitors Fair
MANAGEMENT EXECUTION
Employee productivity Good
Sales growth Poor
EPS growth Poor
P/E growth Fair
EBIT growth Poor
ANALYSIS
Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $15.39
Target stock price (averages with growth) $20.2
Target stock price (averages with no growth) $16.99
Target stock price (manual assumptions) $18.47

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in this stock.

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In a recent Wall Street Journal article, Goldman Sachs compared the top 5 companies in 2000 to the top 5 companies today. In that comparison, Goldman concludes that the market is not repeating the problems of 2000 that caused the stock bubble in today’s market.

The top 5 companies in the S&P 500 today are:

  1. Facebook Inc.  [stckqut]FB[/stckqut],
  2. Apple Inc.  [stckqut]AAPL[/stckqut],
  3. Amazon.com Inc.  [stckqut]AMZN[/stckqut],
  4. Microsoft Corp.  [stckqut]MSFT[/stckqut],
  5. Alphabet Inc.  [stckqut]GOOGL[/stckqut].

and of 2000 were:

  1. Microsoft,
  2. Cisco Systems Inc.  [stckqut]CSCO[/stckqut],
  3. General Electric Co.  [stckqut]GE[/stckqut],
  4. Intel Corp.  [stckqut]INTC[/stckqut],
  5. Exxon Mobil Corp.  [stckqut]XOM[/stckqut].

The five companies in 2000 traded at 47 times expected earnings, according to Goldman. Today’s five biggest companies trade at 30 times expected earnings—making them by no means a bargain, but still less expensive than the stocks that dominated the stock run in the early 2000s.

The tech giants powering the S&P 500 today also reinvest far more of their profits into their businesses than their predecessors did. The five companies funnel about 48% of their cash flow from operations into capital expenditure and research and development spending, according to Goldman, well above the S&P 500’s 21% average and the 26% average for the five biggest companies in March 2000.

According to Goldman, “Lower growth expectations, lower valuations and a greater reinvestment ratio suggest the current concentration may be more sustainable than it proved to be in 2000.”

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I recently came across this list on Forbes on the largest 25 tax payers. Forbes does a bit of analysis on each of them. It is probably worth your time to jump over, but I thought I would give the highlights here:

 

Rank of tax expense

Company

Symbol

Effective Tax Rate
1 ExxonMobil XOM 39%
2 Chevron Corporation CVX 43%
3 Apple Inc. AAPL 25%
4 Wells Fargo & Co. WFC 31.2%
5 JP Morgan Chase & Co. JPM 26%
6 Wal-Mart Stores WMT 31%
7 ConocoPhillips COP 51.5%
8 Berkshire Hathaway Inc. BRK 28%
9 IBM IBM 24%
10 Microsoft Corporation MSFT 22.8%
11 Philip Morris International Inc. PM 29.5%
12 Goldman Sachs GS 33%
14 Comcast Corporation CMCS 32%
14 The Procter & Gamble Co. PG 23.5%
15 Johnson & Johnson JNJ 23.7%
16 Intel Corporation INTC 23.6%
17 Occidental Petroleum Corp. OXY 42%
18 UnitedHealth Group UHG 35.9%
19 The Walt Disney Company DIS 32.7%
20 AT&T T 27.8%
21 Oracle ORCL 21.4%
22 The Coca-Cola Company KO 23.1%
23 The Home Depot Inc. HD 37.2%
24 McDonald’s MCD 32.4%
25 Google GOOG 19.4%

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Jim Cramer has probably received more acclaim for helping individual investors than anyone. His show Mad Money is very popular and he gets praise for his Lightning Round segment. On that segment, callers ask him about a stock and gives a very quick answer as to his thoughts. I am not interested in criticizing Mr. Cramer for his quick appraisal as I think that this type of analysis is always a challenge. I am consistently amazed at his ability to give good advice on the fly.

I thought it would be interesting to compare my thoughts to Mr. Cramer’s Lightning Round. I am not going to do the full analysis like my traditional stock review posts but rather just say if I agree or disagree with him. Here are last weeks picks and my thoughts. If this article is well received, I may continue this as a regular feature.

The Lightning Round picks came from the Mad Money page on The Street.

Company

Date

Segment

Jim Cramer’s Call

Confident Investor Call
American Capital Agency (AGNC) 11/08

Not good enough
Align Technology (ALGN) 11/05

Not good enough
Yamana Gold (AUY) 11/05

Worth considering
Bristol-Myers Squibb (BMY) 11/09

Not good enough
Boardwalk Partners (BWP) 11/07

Not good enough
Caterpillar (CAT) 11/09

Already on Watch List
Chevron (CVX) 11/09

Worth considering
Changyou.com (CYOU) 11/08

Not good enough
CYS Investments (CYS) 11/08

Not good enough
Caesars Entertainment (CZR) 11/09

No- not profitable
Facebook (FB) 11/09

Not good enough
Frontier Communications (FTR) 11/07

Worth considering
SPDR Gold Shares (GLD) 11/05

I don’t analyze SPDR
Generac Holdings (GNRC) 11/08

Not good enough
Google (GOOG) 11/09

Already on Watch List
Harley Davidson (HOG) 11/09

Worth considering
Intel (INTC) 11/05

Worth considering
JC Penney (JCP) 11/07

No – not profitable
Nordstrom (JWN) 11/09

Worth considering
McDonald’s (MCD) 11/05

Not good enough
MGM Resorts (MGM) 11/05

No – not profitable
Microsoft (MSFT) 11/09

Not good enough
Matrix Service (MTRX) 11/05

Worth considering
Protein Design Labs (PDLI) 11/05

Worth considering
PPL Corp (PPL) 11/08

Worth considering
Sears Holdings (SHLD) 11/07

Not good enough
Skyworks Solutions (SWKS) 11/08

Not good enough
VIVUS (VVUS) 11/07

No – not profitable
Walgreens (WAG) 11/05

Not good enough
Wynn Resorts (WYNN) 11/09

Worth considering
Yahoo! (YHOO) 11/09

Not good enough

 

As you can easily see, I am a bit more conservative on my choices than Mr. Cramer.  I really want a company to be growing well and be profitable in order for them to be on my list.