Intel (INTC) Investment Analysis: Buy Opportunity with High Dividends and Growth Potential

1. Recommendation: Buy Intel (INTC) Green & Gold Fund

2. Key Investment Points • Appears to be undervalued compared to the market • Strong Research & Development • High Dividend .90 (3.97%) • Future Growth Potential

3. Industry Overview • Major competitors (AMD, TXN, ARM, Samsung Electronics) • Worldwide semiconductor sales were 299.5B in 2011 • The Semiconductor market is highly cyclical • Intel’s market share in the semiconductor industry is 15.9%, Samsung Electronics 9.3%, Texas Instruments 4.5%, Toshiba 4.3%, and Renesas Electronics 3.6% • Intel enjoys an 80.3% microprocessor unit market share. AMD is the other main competitor. • ARM Holdings has a 95% market share in the mobile chip industry

4. Intel (INTC) Company Profile • 2011 Revenue- 53.99B • 2011 Net Income- 12.94B • Full time employees- 100,100 • Intel Corporation designs, manufactures, and sells integrated digital technology platforms primarily in the Asia-Pacific, the Americas, Europe, and Japan. • Intel offers microprocessors, chipsets, motherboards, flash memory, wired and wireless connectivity products, communications infrastructure components including network processors, and products for networked storage.

5. Strong R&D Expense • Texas Instruments - 480 Million • Advanced Micro Devices- 345 Million • ARM Holdings- 63.15 Million • Intel- 2.51 Billion

6. Buy Low, Sell High • Stock has fallen about 20% in the past 6 months • On September 7th, Intel announced that its revenue for the 3Q will be lower than once expected. They lowered expectations to 12.9 to 13.5 B from 13.8 to 14.8 B. • Customers are reducing inventories in the supply chain compared to normal 3Q inventory growth • Softness in the PC market • Slowing emerging market demand

7. Future Growth • Intel purchased 1,700 patents and patent applications from InterDigital (NASDAQ: IDCC) for $375 million in cash in January of 2012. The patents included 3G, LTE, and 802.11 technologies. • The Intel AZ210 was the first mobile device powered by Intel. It is sold in India, UK, and Russia. • Intel entered an agreement with Motorola Mobility, Inc. Motorola recently released the Motorola RAZR I with a 2GHz Intel Chip. • Intel acquired McAfee in 2011 • Intel visions adding security features to its chips and hardware • In April 2012, Intel entered into a definitive agreement with Cray Inc. to acquire certain assets related to its high-performance computing (HPC) interconnect program

8. Future Growth • Recently invested $40 million in 10 different technology companies to “increase utilization of microprocessors between clients and servers” • Ultrabook – shipments to increase to 95 million by 2016 • Windows 8 • Haswell – to be released in 2013 • “Active-idle” state, where computer thinks it’s awake, but is still mostly asleep. This allows it to have faster wake-up response • Maximizes battery life • New Atom chips (“Clover Trail”) • Reduced power consumption • To be used in tablets along with the Windows 8 platforms

9. Investment Information

10. SWOT Analysis

11. Investment Thesis • We believe the stock is undervalued compared to the market. The company has a high dividend, a positive future outlook, and potential growth into the mobile chip market.

12. Portfolio Placement / Recommendation • Sector : Information Technology • Current Holdings: EMC, ORCL, AAPL, IXN, IXP • Target Sector Allocation: 9.88%, $53,549 • Current Sector Allocation: 8.3% , $45,179 • Remaining Allocation: 1.58%, 8,563 • BUY 350 shares of INTC at a Limit Price of 22.75 (approx. 7,950 , 1.48 % of portfolio) • Holding Period/Exit Strategy: 2-3 years, Consider selling if stock price rises above $35 or below $14 or if fundamentals change dramatically