Intel Corp - Time to Purchase More

Intel Corp (Ticker: INTC)

Closing price: $29.97/share (as of 1/29/2016)

Sector:  Technology
Industry:  Semiconductors

We all know INTC right?  If we have a computer/laptop, there is a good chance there is (or there was) an INTC sticker on it.  INTC is one of the largest semiconductor chip makers in the world.  I don't know anything really about technology.  But from what I've read INTC is still a decent buy.  

INTC's fiscal year end is in December.  So the figures I have reviewed are not audited (that takes time) but they look pretty decent.  First and foremost, they have a ton of cash (and short-term investments) - over $20 billion.  Right off the bat, they are probably not going to cut their dividend in the near term.  Good news for Pru!

(Once they release their audited annual report, I'll need to read that so this is just skimming the surface.)

INTC has had gradual revenue growth for the past several years (2012-2014).  Despite being in the technology sector, INTC seems to me to be a mature company.  So I don't expect a ton of growth.  I expect them to keep doing what they do well.  Expenses in 2012-2014 didn't change much so their net profit slightly rose (just like their revenues.  Through 9/30/2015, it was more of the same.

At 9/30/2015 their current assets are twice the size of their current liabilities.  This is good news - it means in the short term they can pay their bills!  Phew!  Even better, total liabilities for INTC at 9/30/2015 were about $40 billion but they have current assets (cash, investments, receivables, inventory, etc.) of about $36 billion.  So they can definitely pay their bills!  INTC's equity (or net worth) was a positive $57 billion.

I'm not super smart but I'd say that INTC's fundamentals are good.

Press is saying that in 2015 INTC acquired another chipmaker for about $17 billion (that's a lot of money!) but that it should help INTC to expand into different areas.  Acquisitions are always hard.  I mean they are like marriages....sometimes they work and sometimes they don't.  And if you live in the U.S., you got a 50:50 chance of either one.  This is something to keep an eye on.

Overall, I am happy that I own 5 shares of INTC.  But I would like to increase my holdings.  Need to clear this with my company (they have to confirm it's not a client etc. etc.).  If I get the OK, I'll grab some shares on Friday.

Pru
*Remember this blog is for entertainment.  DO NOT take anything written as advice!