I entered a limit order this morning that was 15% below my cost basis on Intel. I never thought it would have executed so soon. With the beating that HPQ (-12.2% as of writing) has taken today along with a downgrade of ARMH and a UBS downgrade of INTC, shares are down over 4%.
It's true that PC sales are expected to be slow but Intel is making a push into the mobile market and they still have great margins on server and workstation processors. You definitely can't count them out. I believe INTC has been unfairly punished and I attribute a lot of the selling due to fear. We all know what Buffett said, "...be greedy when others are fearful." I am taking advantage of the weakness to average down.
I bought 102 shares of INTC at 19.38/share. This purchase lowers my cost basis to $21.66/share from $22.80/share. This also makes Intel my largest holding now, almost 9% of my portfolio currently.
Great buy. I picked up 100 shares for $19.60 including commission. I'd be ready to buy more if the price dropped below 18.50 - or maybe i'll just sell a put.
ReplyDeleteThanks ADY. I saw several people also picked up shares of INTC yesterday. I got in near the low but would be tempted to buy more if it keeps dropping.
DeleteThanks for stopping by!
Solid purchase here. The valuation and yield are compelling. The yield on INTC is approaching the level usually seen by utilities. Crazy!
ReplyDeleteI don't know if I want to buy a whole lot more, as I currently have 170 shares, but if weakness continues I can't imagine I won't buy. I actually came pretty close to transferring funds to my brokerage and buying today after I seen the significant drop after the news of the CEO retiring.
I'm simply still waiting on further clarity on mobile processors. I think they have some solid architecture here, but manufacturers have to buy in. I think their new chips will catch on, but when and at what rate is the question. Sill, this stock is a solid value play just factoring in PC sales (even at slowing rates) and server businesses. Cloud computing will also continue to grow.
Best wishes!
Hi DM. Thanks for stopping by.
DeleteI agree that the yield is really hard to pass up here. I'm a little overweight INTC now but would still buy more if it keeps dropping. I'm not too concerned though as I'm still aggressively building my portfolio.
The push into mobile processors is the biggest uncertainty factor. There's no doubt for me that they will produce a viable competing product but as you mentioned they have to be able to sell their product over their biggest competitor in the space, ARMH.
I'm still optimistic and believe a lot of the uncertainty is already factored into their price.
Solid buy here at a great price! I would also consider adding more shares, but may already have enough hi-tech in my portfolio. How much lower can this thing really go?
ReplyDeleteHi FI Fighter. At $18/share INTC would yield a whopping 5%! I really don't see shares going that low but nobody can predict the uncertainty of the markets. I know I would definitely be buying more at that price though. Good luck!
DeletePhew INTC has taken a huge beating lately. I want to buy more shares but I'm just trying to pick a good time. I bought this company in the $19 range before and have even seen it fall below $18 a few years ago. It seems when news is bad it snowballs out of control. tech stocks... but it also can go back up fast too.
ReplyDeleteHmm I think I'll make one more purchase and that's it! Another purchase will put me over 200 shares which is more than enough. This one is not a sleep well at night stock.
I like the new blog layout, it matches the background.
Hi CI. Thanks for stopping by to comment.
DeleteDG investing is about buying stocks with a large moat that produce increasing dividends every year. This strategy allows me to sleep well at night. You really have to think about increasing positions if you are worried about them at night. Everyone has their own risk tolerance though and I still allow myself to make some speculation plays. I could be wrong on INTC but I'm still optimistic about their future.
INTC has definitely taken a beating and technology stocks in general have higher betas but I don't think INTC will have any trouble paying their dividend. Now they probably won't have huge double-digit increases in the near-term but I hope to look back in 20 years and be really happy that I got in at these low prices. I could always be wrong though. If I'm still overweight when INTC has a nice run back up then I will probably sell some covered calls. I plan to use options to limit my risk.
Thanks, the old bright orange layout was hurting my eyes lol so this one is a better fit.
Take care!
Great purchase -- were it not for a lack of cash, I would be buying more INTC myself.
ReplyDeleteHi DGM. Thanks for stopping by.
DeleteINTC's yield is hard to resist. Quite a few stocks are looking attractive right now, including VOD, KMI and MCD to name a few. I'm hoping to make some large purchases in December if prices stay depressed.
Be safe in your travels.