I create this thread for any INTC investors because the most popular thread, should I hold the stock, is broken now. INTC is bottom out around $85. Tomorrow is the option expiration date, many widely held stocks are closed in $5 and $10 increment. For examples, INTC 85 3/8, IBM 99 7/8, MOT 69 7/8, TXN 129 3/4. In the past, if the market droped in the option expiration week, it normally would go up on the following monday. If you check the history, you would know the sell-off of INTC happened in Jan 96, Oct 94, Apr 93, Oct92, Oct 91, the day after their earning announcement. It typically lasted two to three days and then the stock would double or tripple in 12 month. As a matter of fact, INTC appreciates 5000% since July 88. Besides, fundamentally speaking INTC is a very solid Company. It does not just sell the microprocessors but the chipsets, the motherboards, the flash memory. As I said before, PC revolution is just a beginning. Less than 43% of US families and less than 5% world wide families own a PC. It is a long way to go before INTC is matured. Since the stock has corrected aboout 16% from the high of 102, the down side risk is minimum now. Anyone who wants to own INTC for a long time should try to accumulate tomorrow.
This stock and the market needs a rest! Intel 75 to 80 below 20EPS is the buy area. See 10 percent more on the downside over the next six months. Chips seem to be faster then the internet and the programs. Intel is to good for the rest of the computer world.
Texomacieman It appears that you are long-term bullish but short-term bearish for INTC. My definition of long-term is over three years and short-term is under 12 month. INTC's stock is not like some emerging technology stock that swing 180 degree north and south constantly. It would move up in a very few days period or move down in a very few days period and stay there for a few months. I am sure that this correction is over now. Your prediction of $75 to $80 is possible, if INTC misses its earning in Jan 98. But from now to January 98, the possibility is very slim. I think the stock will remain in $85 to $90 trading range. If one is a day trader, one should move out of INTC now. If one is a long-term investor, one should hold one's shares and start to accumulate some more. The best time to buy for a solid growth stock is when the chicken throw their towels. However, if one feels uncomfortable, one can write out of the money calls such as Nove 90, 95 or December 90, 95.
Your are correct in that the stock market, and Intel, could use a "rest". We probably are in a short rest period as we speak. Intel's product improvements, as good as they are, may be getting shoveled out their front door at too fast a pace. It is difficult, and very expensive, for the consumer to keep up with the flow of advancements. Intel, however, is well aware of this problem. I have confidence that they will do the right thing, both for themselves and the community that uses their products. I have long term faith in Intel, and have had since 1993. My faith has been justified.