Tuesday, December 18, 2012

Should You Be Holding Intel Shares

Many analysts have downgraded Intel,but First Eagle Funds is long the stock.Our crystal ball is foggy at best at First Eagle,admits Matthew McLennan,CFA,portfolio manager of Global,Overseas and US Value Funds at First Eagle.With regards to Intel,this is a business that's priced for a fade,not growth.We have some buffer in the capital structure strength and the receding of AMD.
This is a business that's always been cyclical.One thing's for sure:Intel has unparalleled manufacturing facilities.We're very conservative investors.Whilst there are pressures in the PC market,some of these companies have a position in services as well.The yields on these securities are returning twice what Treasuries are.
Intel,Microsoft and Cisco have an entire services infrastructure built around them.
Matthew McClennan was born in Papua New Guinea and grew up in Queensland,Australia.He holds a Bachelor of Commerce degree with first class honours from the University of Queensland.He had formerly been employed with Goldman Sachs.
Intel(INTC),Microsoft(MSFT),Cisco Systems(CSCO),Advanced Micro Devices(AMD)

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