Hanging On to Intel
Worries about Intel's (INTC) capital-expenditure spending, and their impact on margins, are weighing heavily on the stock. So is the planned departure of CEO Paul Otellini. The company did beat estimates, but the initial response is the beat wasn't overly impressive, nor was guidance.
Still, the stock isn't expensive on a fundamental level, so I am going to give my long February calls a bit more time here. I already own Intel, and nothing in this report makes me want to sell the stock. This is one I've preferred to hold for the dividend and potential share-price increase, along with the ability to sell covered calls -- and that thesis is still intact. Support sits around $21 and $20.70, along with multiple levels below these prices, so I feel downside is limited here against price recovery and the dividend....322 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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