tag:blogger.com,1999:blog-5232481098066200105.post3746787550287277684..comments2024-02-21T05:09:47.829-05:00Comments on Compounding Income: Intel Increases DividendCompounding Incomehttp://www.blogger.com/profile/04207986983526689578noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5232481098066200105.post-58630715514398042982012-05-16T12:21:23.508-04:002012-05-16T12:21:23.508-04:00Lest hope it woun't reach IBM level. As everyt...Lest hope it woun't reach IBM level. As everything in live everything must be balanced and IBM under my opinion has crossed that line with their share repurchase. I bet that their share price would fall 2-3 times if they stop their share repurchase program.Project2035https://www.blogger.com/profile/09635784899457467236noreply@blogger.comtag:blogger.com,1999:blog-5232481098066200105.post-17334630695904248032012-05-13T17:27:24.515-04:002012-05-13T17:27:24.515-04:00Intel does spend a lot of cash on capital expendit...Intel does spend a lot of cash on capital expenditures, around $10 billion per year. It's why they make the best chips. I don't mind if a company chooses to do stock buybacks, but I'm not a fan of borrowing to do it. Right now interest rates are historically low, which might explain the strategy. <br /><br />The good news is that when INTC did massive buybacks the stock price was a lot lower than today. So far it appears to be working.Compounding Incomehttps://www.blogger.com/profile/04207986983526689578noreply@blogger.comtag:blogger.com,1999:blog-5232481098066200105.post-65691506221532621022012-05-13T13:25:06.844-04:002012-05-13T13:25:06.844-04:00PC and smartphones are something that going to be ...PC and smartphones are something that going to be two different things for some time so Intel will have its share in PC industry. Yes Intel ratios are one of the best from largest companies. Im placing its No.2 after Chevron. What I dont like is their equity level decrease and very large share repurchase over 100% of earned cash flow (net income + depreciation), this it very unhealthy for the company in long term. Company must invest and grow and when their equity is decreasing that not going to happen as debts are not bottomless and all creditors (financial and suppliers) always look at how many money company has of its own. Good news is that dividends + share repurchase was below 100% in last few quarters, but im considering ~50% as a good level for a company as other half should be invested into growth and expansion.Project2035https://www.blogger.com/profile/09635784899457467236noreply@blogger.com