This stock has collapsed after going up to 27 or so.
They have seen a fairly substantial drop in sales and a bit of a drop in earnings from the prior year. Right now there is a lot of weakness in chip sales for PC/desktops and they have not made much inroads into the mobile market.
They are now setting up to be a huge value again with a single-digit PE (ttm) and 4% dividend yield. They still have a moat in servers, PC and desktop chips. I think they are now again representing value at this price which argues for stability of their markets rather than for future growth. I also think that with their massive R&D they will have success penetrating into mobile chips in the next couple of years.
I think 19-20 will be a good entry point although it may never get there. Another option could be to sell a put at that level and just collect the income if it doesn't drop. If you want to secure yourself from a big drop (which I think is quite unlikely from these levels) one could buy a put at a lower price to protect on the downside. In big, strong, leader type companies I would just usually sell a slightly out of the money put option for about 6-12 months in the future and let them rebound. The disadvantage of the put strategy is you lose the dividends and you don't get the benefit of the upside. Another option some people use is to buy the stock but sell a covered call out of the money but this strategy will also cause you to lose out on the upside. Alternatively you can play a strangle where you sell a covered call (after buying the stock) and also sell a put.
Anyone else think of picking up some INTC? If so they why so. If not then why not. Discussion appreciated.