Intel (INTC)

[PMREdmonton]

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.

[thenegotiator]

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.

of coarse i am thinking of picking up some.
are we stopping buying PCS?

[gibor]

The only reason I'm not buying INTC, because my wife used to work for them and has plenty of shares in brokerage account.... Intel has a huge growth potential in 3rd world countries

[Toronto.gal]

One of my 1st tech stocks that I bought/held & drip, and now pretty much nearing my original purchase price, so I'm definitely adding more [in tranches].

[thenegotiator]

One of my 1st tech stocks that I bought/held & drip, and now pretty much nearing my original purchase price, so I'm definitely adding more [in tranches].

and to add on to my post.
it may go lower.
it is holding really well today though.
after all housing mkt is exceptional

[ddkay]

I'm bearish Intel long term, they can't complete their product pipeline unless there is enough demand for their high end desktop/server chips to warrant building new fabrication plants. I think PCs will be for the high end consumers while everyone else chooses lower power/cost/margin tablets or notebooks that run Android/iOS/Windows RT.

[Spudd]

I just read an article in the October Wired magazine that was talking about Intel's efforts to expand into the mobile space. They are working on this. According to the article, they are allowing the guy in charge of the mobile chips to rebel against the stuffy corporate culture, which is helping him deliver results. It remains to be seen whether they'll continue trending this way (helping them in the mobile space) or if the corporate culture will reign supreme.

[thenegotiator]

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.

i will buy more at 19 bux.
keep on selling

[ddkay]

Atom processor was supposed to be Intel's saving grace in the mobile space. They started putting them into netbooks/nettops. However Atom was always (and still is) not suitable for true mobile application. The chips are more powerful than ARM but they can't beat ARM in TDP (power) or price.

[thenegotiator]

Atom processor was supposed to be Intel's saving grace in the mobile space. They started putting them into netbooks/nettops. However Atom was always (and still is) not suitable for true mobile application. The chips are more powerful than ARM but they can't beat ARM in TDP (power) or price.

sell me ur shares
i am buyng
i will buy today at MOC