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Intel Corporation Message Board

  • trader_the trader_the Jul 12, 2013 11:26 AM Flag

    Short covering started already

    Moving up now

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    • These articles saying Intel is the most shorted dow component attract contrarians, dogs-of-the-dow thinkers. Great stuff, but what has me stoked today is the very nice rise in ARMH which is setting it up very nicely for another round of shorting/puts.

      Sometimes I think great companies are harder to understand and appreciate than merely good companies. As an analogy, it's harder to follow a chessplayer who plots 7 to 10 moves in advance versus a player who only foresees 3 or so moves ahead. I can picture that guy from Goldman's, Cavello, watching a grandmaster play and shouting, "Dummy, you let him take your bishop with a pawn!"

    • No one's covering anything. Yet.

    • How does one cover 229 million shares in 3 days without losing the shirt off their back? With a good earnings report or guidance, what will their strategy be?

      • 2 Replies to stockjock44
      • 235 million shares short.

      • No need.
        Some are required for the Inverse ETF positions (either real shots or derivative tracking).
        Option market maker hedging.

        One area would be by those holding the convertible notes. They are getting the coupons, but when the share price goes higher than their conversion price, they can short INTC since they own shares by proxy through the convertible notes.

        example ....

        SANTA CLARA, Calif., Jul 21, 2009 (BUSINESS WIRE) -- Intel Corporation today announced the pricing of its offering of $1.75 billion principal amount of 3.25 percent junior subordinated convertible debentures due 2039. The debentures were offered and sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The sale is expected to close July 27, 2009. Intel has also granted to the initial purchasers of the debentures the right to purchase up to an additional $250 million principal amount of debentures to cover overallotments. Intel intends to seek a rating for the debentures promptly following the offering.
        Interest will be payable on the debentures semiannually at a rate of 3.25 percent per annum. In addition to regular interest, beginning on Aug. 1, 2019, contingent interest will accrue in certain circumstances relating to the trading price of the debentures. In certain circumstances, the debentures will be convertible into cash up to their principal amount and any conversion value above the principal amount will, at Intel's option, be settled with shares of Intel common stock or cash. The initial conversion rate for the debentures is 44.0917 shares of common stock per $1,000 principal amount of the debentures, which is equal to a conversion price of approximately $22.68 per share, representing a 20 percent conversion premium based on the closing price of Intel's common stock of $18.90 per share on July 21, 2009. The debentures mature Aug. 1, 2039.

 
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