Ibexx, thanks for the post! I really don't try to sound sophisticated about option strategies. I guess it just comes out that way...??? You're right about quite a few 'option traders'...no research and no focus on what their strategy is (or should be).
What do you think of INTC's current price level? I think if they beat Zack's estimates by 10% and report 1.97, that will give them a trailing 12 month EPS of $5.64 At the current stock price, that would give INTC a P/E of 25.27 This is still higher than the P/E has been for the last 6 1/2 years (other than the current level of 30.62).
I'm don't have a hard on for P/Es but I'm just trying to illustrate that the price seems to be high compared to their earnings (especially looking at their historical figures).
Being that INTC is an institutional favorite---62.61% share outstanding are owned by institutions---and a typical top holding of many growth funds, I think they are going to see this stock as overvalued soon and dump some of their positions.
Don't get me wrong, their fundamentals are VERY good (balance sheets, EPS picture, revenue growth etc.), and they're pretty much a monopoly. I'm just saying that the stock seems overvalued.
Do you, or anyone else have comments?
BTW, I play INTC on the upside and downside all the time, so I'm not an INTC bear (I'm more of a bull, but I'm also rational).
Kevin |
