Intel (INTC), the world’s largest semiconductor manufacturer reported a year-over-year increase in earnings. This is an important development in the land of technology, as semiconductor companies which focus on personal computer chips, such as INTC, have experienced demand declines as PCs sales have slowed. This is juxtaposed to semiconductor companies which focus on mobile telecommunications such as Qualcomm (QCOM) which have been growing steadily.
INTC has had to adapt to changing demands in the world of technology. Rather than concentrating on mobile solutions, INTC is refocusing its efforts on the cloud and “the internet of things.” Increasingly, the cloud is providing the engine behind mobile telecommunications, social networking, streaming entertainment and data storage (such as servers) The “Internet of Things” deals with the devices that are connected to the internet, such as mobile devices, sensors, thermostats, etc. Taken together, the cloud and internet of things are fast growing technology segments.
Unfortunately, those are also early stage technologies, as my wife and I learned. ADT, owned by Apollo (APO) managed to totally screw up the installation of our internet enabled thermostats. As a result of their incompetence, our brand new furnace did not operate. We have just had it repaired by a qualified HVAC company. But, I digress.
INTC declined about two points or just over 5% after the earnings announcement. This reaction was due to the company providing low-ball revenue guidance. INTC’s stock has a habit of declining after earnings reports. About a day or so later, the trade is to buy INTC on the dip. The stock pays a 2.75% annual dividend (based on Tuesday’s closing price) and will next go ex-dividend on November 3. We own it for our Dividend Value portfolios.
Aside from the INTC news, China reported strong growth data of 6.7%. If China can get its mojo back, it could spread to other economies around the world. Tonight is the final Presidential debate right here at UNLV. My son will be there, but unfortunately my wife and I will not. Instead, it is best to stay off the streets and remain at home. As I always say, expect the unexpected and check your biases at the door.
( A picture I took Saturday night of the view of UNLV’s campus and the Thomas and Mack Center, where the debate will take place; from the Linq’s High Roller )
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long INTC & QCOM— although positions can change at any time.
Scott Rothbort is the President & Founder of LakeView Asset Management, LLC, a registered investment advisor specializing in high net worth private wealth management. For more information on investing with LakeView Asset Management, LLC call us at 888-9LAKEVIEW or request more information by clicking on the contact button on the top right hand corner of the website. LakeView Management, LLC is a Nevada LLC, with its principal office located in Henderson, NV and branch office located in Millburn, NJ
Scott Rothbort is also the publisher of the LakeView Restaurant & Food Chain Report, a newsletter focusing in on food, restaurant, beverage and agricultural stocks. An individual subscription to the newsletter can be ordered at www.restaurantstox.com Furthermore; Scott is also a professor at the Seton Hall Stillman School of Business in South Orange, NJ.
– Read Scott’s intra-day thoughts and comments on Scutify for which he is a co-founder of its parent company Wall Street All-Stars, LLC
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