Nothing is certain with stocks, but Intel's 'floor' goes back to '02 at just under $13 a share. So far this year Intel has traded as low as $13.37 so imo $14 is not really the floor. More importantly is that there is much more upside to this stock than downside. Seems like in every bear market many focus on 'it COULD go lower' but I play the probabilities based on the fundamentals and the stock's history. Intel is in the best competitive position ever against AMD, it is highly profitable and pays a 4% dividend at $14 a share, has a bullet proof balance sheet and I don't see global laptop sales falling off a cliff. The odds strongly favor a much higher stock price down the road than a lower one which is the best you can say about any stock imo. Intel is clearly well positioned to survive this global recession and thrive in the eventual recovery. In short, its a buy anywhere at $15 or less, and has been for over a decade.
"We believe Intel is heading in to a perfect storm in 2009, with some of the prior growth drivers fading and multiple macro and company-specific headwinds, which imply a slowdown in its growth and multiple contraction, well below current consensus Street estimates," analyst Vijay Rakesh of ThinkPanure told clients in a research note, in which he slashed his rating on Intel from buy to sell.”
I think short-term-oriented investors sell the stock and longer-term investors trim their positions/hedge their near-term exposure.