Adding Intel Shares
As noted in my pitch log, I added 28 more shares of Intel in my IRA. The stock is still down over 10% from its high for the year, holds a bunch of cash, sports a 3.3%-ish dividend yield, and sports a sub-11 P/E and sub-10 forward P/E, reasonable PEG ratio, is making gobs of free cash flow, and is striving to meet challenges relating to the mobile revolution. It's not a home run, but this is a no-brainer hold for me for the next decade or until there is some mathematical proof-positive that it is actually in decline, rather than speculation.
For the record, my blogs and Fool comments reflect that I called the RIMM implosion in 6/2011, I called Best Buy well in advance of the implosion. I just don't see it yet on MSFT or INTC. The key for both stocks, though MSFT more, will be the actual market reaction to Windows 8 at the end of 2012/early 2013. Even if Windows 8 tanks, the stocks will not go to $10 overnight -- just as RIMM and Best Buy experienced relatively protracted declines. There will be time to get out. The time to make the evaluation of these stocks' futures is then, not now. Right now, they are cheap, and the potential catalyst to begin their slide, or to make them pop, has not yet happened.
I have held stock in INTC since around $13/share during the crisis, and have added a few times, the last time at about $20/share not quite 1&1/2 years ago.
As I have stated many times, this CAPS player does not attempt to win at CAPS, at least not quickly. All stocks listed here are my real life holdings, and they are my ONLY real life stock holdings outside of mutual funds. When I sell out completely I remove the stock from CAPS. When I add shares I reflag the timeframe so it goes the date of my last purchase is always visible. Notes about purchases are in my pitches.
Also, I have a new CAPS player, "TheDumbMoney2," which does attempt to win at CAPS, started at the end of April 2012.
Happy summer! I don't know about you, but I can wait for the "let's play chicken before we compromise" Euro crisis to hit again this fall, now that Eurozone leaders are returning from their summer vacations.
Oh, and I'd love it if you would follow me on Twitter, at https://twitter.com/The_Dumb_Money