INTC shares were down over 5% today after their earnings announcement. I decided to take the opportunity to add to my position.
I bought 102 shares of INTC at a price of $21.35/share.
This brings my shares of INTC up to 500. I mentioned before that I am willing to commit to up to 1000 shares. I have outstanding puts that could get me another 300 shares. I still believe in INTC long-term and they are aggressively trying to become a major player in the mobile space.
These additional shares will increase my dividends by $91.80 per year. This also puts my forward dividends over the $4,000 mark even with the sell of DOW yesterday.
INTC doesn't seem to be doing a good job of meeting it's earnings estimates. But I remain bullish on the stock for the long-term. I agree with you that Intel will make progress in the mobile space, even if it missed the first boat.
ReplyDeleteThey barely missed their earnings. The price drop I think was more of an over-reaction. Their biggest money maker is chips for PC's and people are worried because PC demand is slowing. They are definitely spending a lot on R&D and should be a player and big competitor in the mobile space in the next couple of years. ARMH has the lead for now and has had a big run since 2009. ARMH makes great low-power chips, but they don't have the processing power that Intel is working on. I think it's just a matter of time. I'm fine with waiting and will continue averaging down on weakness.
DeleteNice purchase. I also like the company's long-term prospects, even though the short-term operating results aren't good. However, it's not like their latest quarterly earnings or near-term outlook were unexpected, so I don't get the huge sell-off today. If the stock price continues to fall and goes below $20, then I would consider making a purchase (depending on cash availability).
ReplyDeleteI'm with you. If the stock goes below $20 I'm probably adding more shares or at least selling more puts. However, INTC is my largest position(about 10% currently). I'm not too worried though as I'm still at the beginning stages of aggressively building my portfolio. Thanks for dropping by.
DeleteAAI,
ReplyDeleteTalk about conviction! It's good to see you stick to your guns on this. If you don't believe in the company, why buy shares in the first place? If you want to own a company, a 6%+ drop just gives you a better reason to own it. I also believe in this heavyweight blue chip long-term and am heavily invested for my own purposes at 240 shares (500 shares is not kidding around!), but at the same time that's about as comfortable as I get with this one. The heavy R&D budget (high CAPEX) that everyone is concerned about is puzzling to me, as their research and development is one of the things that makes Intel so attractive as a company. I mean how can you be a worldwide leader in chip fab if you don't continuously perform heavy R&D? Of course, on the other hand all that spending should translate to some inroads into mobile soon...so we'll see how all that goes.
Best wishes!
INTC has enough cash flow to pay for their large capex, dividends and buy backs. Investors are spooked but I think we will have a much better idea of future earnings growth mid to late 2013. I continue to believe that their large R&D budget will pay off long-term as they enter the tablet and mobile space. In this current market I believe INTC offers one of the best values. They are currently my largest holding but I am willing to buy more if I can keep averaging down.
DeleteThanks for stopping by!
Intel is still the worldwide leader in semiconductors.
ReplyDelete