Dipping a toe in the water
I had been overweight Intel since I mentioned it at 19 and change in this spot a few months ago. Sporting a 4% dividend yield, a historically low cash-adjusted P/E of 8, a huge cash pile, no debt, and a capex figure that would run a small nation, I felt it was trading at least 15% below what anyone could conceive of as fair value even if it never grew earnings or revenue again (an outcome, incidentally, that I find unlikely.)
I have a number I think of as a 'position size' in my portfolio; I had a double helping of Intel because of my conviction. I exited half the position today, booking the 15% gain that I was so certain was baked in.
I am happy to hold the rest of the INTC and collect the dividend a while, with the prospect of future price appreciation as well. I am going to leave the proceeds of the sale in cash while I hunt around for a dip or a pullback in a speculative name. I think there may be the usual 4Q headwinds to stock prices so I am hoping to buy a name on a discount.
I'd like to buy the next CMG, but I think CMG itself may have come a bit far too fast. Already own some BWLD so to diversify would be looking in a different sector. Feel like energy, financials and materials are dead money for the next year, and Lord only knows what happens with healthcare - Congress will decide, not the market. So I am looking at tech, cons disc; TNDM, UA, LULU stand out. APOL has promise too.
For the first time in my career I am substantially regretting not shorting a stock - NFLX. I may yet short them.
Any Fools™ got their eyes on a possible 5 bagger? What are your highest conviction names at the moment?