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Market Insights | Dell Takeover & Cyprus Impact | Stock Pitch Analyst Intel

Stay up-to-date with market trends - Dell going private, Cyprus crisis impact, Intel stock pitch by analyst Stephen. Explore international investment shifts. Analysis includes Dell's LBO, Intel's position in tech sector, & market updates to watch out for.

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Market Insights | Dell Takeover & Cyprus Impact | Stock Pitch Analyst Intel

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Presentation Transcript

  1. Welcome to CCIG! 3/25/2013

  2. Agenda • Today in the Market • Dell takeover discussion • Stock pitch by Stephen

  3. Today in the Market • Cyprus leading to down markets • Apple acquires new start up company (20M) • Blackberry down recently • Less unemployment, not yet growth • http://www.nbcnews.com/video/nbc-news/51262405#51262405

  4. Cyprus Discussion • http://www.reuters.com/video/2013/03/25/investors-fears-over-cyprus-bailout?videoId=241827253&videoChannel=5 • Cyprus banks taking money from savers • Leads to uncertainty about future bank actions • How does this change your view on international investment?

  5. Dell Going Private • Dell going through an LBO • http://www.investopedia.com/video/play/leveraged-buyouts/

  6. Quick Overview • Michael Dell decides he wants to go private • 3 bids for the company • Silver Lake (Dell supports) • Blackstone • Carl Icahn • Special board votes on which option • Some stakeholders upset at value of company

  7. Why go private? • Escape scrutiny of shareholders • Dell needs a radical change for revenue • Short term loss for long term profit • More control over company • Dell revenue down 11% in past year • Is Michael Dell the right choice?

  8. Microsoft and Dell • Microsoft loaning 2 bill to help buyout • Not getting any ownership • Why do this? • Microsoft holds over 60B in cash • Needs Dell to succeed for its software • Good investment?

  9. Stock Pitch -Stephen

  10. Intel at a Glance • Founded in 1968 by Gordon Moore (chemist and physicist) and Robert Noyce (physicist) • Headquartered in Santa Clara, California • Technology Sector and Semiconductor Industry • CEO: Paul Otellini (since 2005) • #6 World’s Most Powerful Brand (According to Forbes)

  11. What does Intel do? • Designs and manufactures advanced integrated digital technology platforms. • A platform consists of a microprocessor and chipset • Sells these platforms primarily to: • Original equipment manufacturers (OEMs) • Original design manufacturers (ODMs) • Examples: Sony, Motorola, HP, Samsung, Dell etc. • Platforms are used in a range of applications, such as PCs, tablets, smart phones, automobiles and medical devices

  12. Market Price • The high: $29.27 • The low: $19.23 • Current: $21.20

  13. Intel Compared to Industry

  14. News to Keep an Eye Out For • CEO is retiring in May of this year • Next Earnings Date: April 13, 2013 • New manufacturing plant in Arizona scheduled for completion this year • $5 billion investment

  15. Conclusion • Offers high dividend yield (good for Jake)! • Biggest cause of concern: where will revenue come from with decline in PC market • For a value investor • Buy… but consider doing more research on the PC market, Intel’s future products, and potential CEO candidates

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