But either way, the actual value of Intel didn't drop by 30% in 6 months.
And Wallstreet wonders why mainstreet wants nothing to do with them.
We don't have the worlds best capital markets...we have the worlds best BSers..
Agree, Agree, Agree; I'm doing the same thing . . . mortgage is 3% and I can buy Intel shares paying 4%. Solid even at "depressed" activity levels and positioned to dominate on any turnaround in economy.
But not near as much potential as my #1 pick . . . . SIMG to report Oct 30 awesome qtr coming and HUGE guidance . . . SIMG chips are in the Samsung Galaxy S3, HTC One, and Sony Experia.
You nailed it. Why issue debt when you can buy back cheap shares.
The recent headline news is depressing Intel share price because 2012 is clearly a bad year for computer sales. And a bad year simply means an earnings drop of less than 10%. But I don't think of a short term problem as a big deal. I've read some analysts project a long-term 6-8% growth. That's fine by me. Intel is a net-net company. This means their financial assets exceed all their debt. Intel has equity of $10 a share. This is the value of all their fixed assets and intangibles. Intel can easily issue bonds at interest rates below 3% but buyback Intel shares that yield 10%. Intel has bought back significant stock and continues to do so. I hope it does so before the stock gets much higher than $20.