Over the last two weeks, INTC shares shed roughly 5%. Due to nothing but luck, I got out before the decline at about breakeven. Factor in dividends and covered call income and I actually came out ahead.
After considering bullish arguments, I have to ask, as INTC stagnates and now dips, do we have a buying opportunity or a dead stock?
Intel: Like the City of Buffalo?Odd comparison, I know. But bear (or bull) with me. I grew up in Niagara Falls, a stone's throw from Buffalo. Today, Buffalo is not as bad as its critics brand it. But, it's certainly not the thriving metropolis it could be. Many years ago, politicians made two independent decisions that sealed Buffalo's fate. Rich Stadium, where the Bills play, was located in suburban Orchard Park, not downtown Buffalo. And the University of Buffalo's main campus was situated in another suburb, Amherst, not downtown Buffalo. Instead, downtown got a modest, but serviceable baseball stadium for the city's Triple A club, the Bisons. Ask anybody. Even people like Buffalo born-and-bred The Goo Goo Dolls and the great Ani DiFranco. They love Buffalo and give back to the community; however, they know that, with some foresight and better planning, the city could be as spectacular as Toronto to the north. Along similar lines, Intel probably could be known as "The Official Chip Supplier of Apple Products." Or something of the sort. Hindsight makes us all geniuses; however, it's clear -- while Apple (AAPL) was innovating, Intel was dropping the ball. Instead of positioning itself as Apple's exclusive partner -- and, thus, a leader in mobile -- Intel hitched to Microsoft's (MSFT) Windows OS and the litter of spare hardware makers who license it. If Intel had cemented that relationship with Apple a few years ago, "Intel Inside" might still mean something exciting to the consumer.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV