A True Role Reversal

 | Oct 18, 2011 | 7:25 PM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

intc

,

aapl

Between Intel (INTC) and Apple (AAPL) right now, with Intel trading up big after the bell, and Apple down a similar amount on a percentage basis, I would rather take Intel.

I think people are going to be very worried about how there's nothing out there looming, lurking that could be positive in the out years for Apple.

But Intel? It's so cheap, who cares?

Which one, however, is really cheap? In reality, after you back out Apple's cash, it trades at pretty much the same price-to-earnings multiple even though Apple's growth rate is much, much faster than Intel's.

We have, however, a momentum driven market, and Apple just lost it, and Intel just gained it. I think that Intel could pick up buy recommendation after buy recommendation after buy recommendation.

But nothing like that is coming for Apple.

So, Apple, amazingly, has become a "show me" stock.

And Intel, after all of these years in the wilderness has now shown me. It's a true role reversal that explains, quintessentially how hard this market really is to navigate.

Columnist Conversations

Well this is confusing...our models were calling for a run to 2072 before a bearish reversal would be possible...
Revenue Trend Apple is one of the most remarkable companies in the world, not just because it has the largest...
HOG has topped out. The stock's twelve day winning streak is ending today with and ugly reversal. HOG o...
Seems like there was a bid underneath at the crucial 2:45 p.m. hour.. day saver? still not sure..

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.