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By Steven Morrison II
All signs point to Intel (INTC) having a banner year in 2013. According to some key analysts, the company is expected to enjoy the fruits of smart product planning and headline-grabbing R&D efforts, pushing earnings through the roof, beating predictions and paying dividends.
But you’ve got to get on board soon. We’re talking a possible $10-$14 make on less than a $21 buy-in per share, if the experts are right, and I believe they are.
But people have been burned by Intel before, that’s why so many of you may be cautious or have an outright ban on anything Intel. This is something I understand completely. The chip maker hasn’t always been a performer and very nearly succumbed to disaster at one point.
But Intel is hot once again, forget what those other guys tell you; forget history. Make your own history.
True, they have been their own worst enemy at times. Case in point: Since August, Intel’s stock price has had a downhill run that looks like the slope of a mountain. Not exactly lighting up the leader board, are they?
The share price went from $26.88 down to $19.36 last month. Ouch. Well, the bleeding has stopped and the stock is now attempting to climb out of the basement, making it a perfect time to buy. Analysts peg the stock’s real value somewhere between $32 and $36.
Under steady new leadership, the company has emerged a tiger among lambs, and 2013 looks to be an epic slaughter for said tiger. That’s why this tech stock should be in your sights – Intel is well positioned to take advantage of the explosion in sales of portable electronic devices such as smartphones and tablets.
They also continue to be a major player in the PC market, supplying a steady stream of chips to eager manufacturers and home computer builders who still regard Intel as an industry standard.
But there’s an even more specific reason to go for Intel for 2013 …
According to Gregory Vousvounis from Seeking Alpha, Intel is “structurally superior” to its competitors and has “great” growth potential. One of the biggest reasons is that company has tweaked its production and R&D strategies giving the company the maximum punch in both the marketplace and manufacturing sides of the business.
“Intel … will begin 14nm production one year sooner in 2013,” wrote Vousvounis, commenting on what will be the industry-leading 14 nanometer production capabilities of Intel’s brand new $5 billion manufacturing plant in Arizona, opening in 2013.
“I expect 2013 to be a crucial turning point for Intel’s mobile strategy,” he wrote.
And the company couldn’t be prouder. Brian Krzanich, senior vice president and general manager, of Intel’s Manufacturing and Supply Chain said in a statement that, “The investment positions our manufacturing network for future growth.”
Indeed, investors, indeed.