01-05-2014, 10:49 AM
TomK, my theories are only guesses. We little guys really don't move large market cap stocks, like INTC, very much.
My guesses are 1.) that INTC has released a flurry of new products lately, 2.) some are looking forward to the results from the large R&D expenditures, 3.) a new CEO that seems to be trying to change the corporate culture to be more responsive to the marketplace, and 4.) that the 3.5% yield is still pretty good for income.
I trimmed a little the last trip to $26 just because I had a purchase in mind and needed a little extra capital.
I'm holding quite a bit yet for several reasons:
1.) INTC does have some very creative engineering. I think they'll come up with competitive products to ramp up sales. The marketing department is no slouch either.
2.) INTC is a fierce competitor. I see it all the time in my business and can't imagine the pressure they put on OEMs once they have a product they can brag about.
3.) I can wait a little longer for a dividend boost. UTX has been on a 5 or 6 quarter dividend raise schedule for years and they don't seem to be punished for it.
4.) There's still a big corporate refresh cycle that needs to be addressed. A lot of small and large businesses are still running XP on older systems. With the end of support for XP only months away, some will have to address that. Can you imagine the fiasco if another breach such as TGT's latest faux pas was caused by someone running an unpatched, and compromised, XP machine?
5.) As I said, 3.5% yield is still a nice income stream. To approximate that income somewhere else will either require me to buy something I'm already exposed to, go to a riskier company or into a field I'm not sure how to value and analyze such as BDCs or MLPs. I'll be patient a little longer.
If it cracks the $26 barrier, I may sell a covered call to capture the premium and if it gets called away I won't have a problem with it. Then to find another place to invest it.
Time will tell.
My guesses are 1.) that INTC has released a flurry of new products lately, 2.) some are looking forward to the results from the large R&D expenditures, 3.) a new CEO that seems to be trying to change the corporate culture to be more responsive to the marketplace, and 4.) that the 3.5% yield is still pretty good for income.
I trimmed a little the last trip to $26 just because I had a purchase in mind and needed a little extra capital.
I'm holding quite a bit yet for several reasons:
1.) INTC does have some very creative engineering. I think they'll come up with competitive products to ramp up sales. The marketing department is no slouch either.
2.) INTC is a fierce competitor. I see it all the time in my business and can't imagine the pressure they put on OEMs once they have a product they can brag about.
3.) I can wait a little longer for a dividend boost. UTX has been on a 5 or 6 quarter dividend raise schedule for years and they don't seem to be punished for it.
4.) There's still a big corporate refresh cycle that needs to be addressed. A lot of small and large businesses are still running XP on older systems. With the end of support for XP only months away, some will have to address that. Can you imagine the fiasco if another breach such as TGT's latest faux pas was caused by someone running an unpatched, and compromised, XP machine?
5.) As I said, 3.5% yield is still a nice income stream. To approximate that income somewhere else will either require me to buy something I'm already exposed to, go to a riskier company or into a field I'm not sure how to value and analyze such as BDCs or MLPs. I'll be patient a little longer.
If it cracks the $26 barrier, I may sell a covered call to capture the premium and if it gets called away I won't have a problem with it. Then to find another place to invest it.
Time will tell.
=====
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan