Tuesday, March 16, 2010

Intel up on rumors of an upside earnings pre-announcement (INTC)

Rumors are flying around today that chip giant Intel (INTC) may revise earnings guidance to the upside this afternoon after the market close.  Shares are +3.66% on big volume.

Certainly a possibility, given its conservative inventory position.  A rebound in the PC market combined with lean inventories like these could make for a very nice gross margin scenario.

If this is the case (as an INTC owner I sure hope so...), don't say I didn't warn ya, back on Jan 14th....

"One number that caught my eye was inventories. As of December 09, Inventories as a % of revenue was 28%, versus 46% a year ago. Intel is entering the new year LEAN, which looks to me like a potential for upside on margins."

A look at their inventory going back 16 quarters:



Copyright 2010 AlphaNinja

 

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