Hi Fintas,
No need ot be sorry.
I bought to close my Intc puts back when the stock was at 35.00
I am wanting to buy the dip here.
Intc revenue,eps and cash were at record levels. The stock tanked to he high 20's on a drop in Gross Margins (64) from last quarter's record of 66. They then guided higher than consensus.
A drop of margins to 64% is a high class worry to have as finally all the past doubters of intc,can no longer say intel is missing mobile.
There always is a bogus worry - Intel missed mobile, Csco is losing to competition, recession in Germany ,ebola in Africa,Saudi's pumping into an oil glut.
Breathe in breathe out,and do try to make good investments that pay over the long run.
The stock was/is extended (35)compared to when I bought it last @ 19.50.
If Intc drops to the mid 20's - I'll smile and embrace it like an old friend.
This drop is far from a crash and corporate earnings are coming in exceptionally well.
So well that I'm loving the opportunity to take put premium into my account at very fat premiums.
If and I think it is a big IF that this market drops into a big chasm as many fear mongers are quite frankly hyping IMHO, I'll be buying great dividend paying stocks that yield higher than the margin interest I'd have to pay.
Note to file - no margin for me.
I've not bought a stock, that has not been funded by my dividend stream - so my middle name is cash.
I have swapped my 401k into an option IRA and it is ready for a crash if it developes as it will be buying great dividend paying stocks that will yield me a very comfortable dividend streams at the lowest tax rate that is in the law books.
Your lowest number is simply a bring it on - as my cash is waiting for price to drop - the result of unsubstantiated fear of a slow down or ebola or whatever WS wants to dream up.
In between put premiums on oil companies are paying 11% on my collateralized money in my account.
I'm not trusting this fabricated correction as it is built on hocus pocus fear mongering.
Have you been watching earnings - they are solid as a steam roller excepting netflix's momo collapse - not my style! - thank you
That being said, what I did need was some volatility and fear in the market so I could reload into 2016 and let the time value decay the fat put premiums that have been built up in gas/oil , and pharma stocks.
This is just a run of the mill correction that allows all of the annuity firms to reload and make their 11-13 % as they pay out 7 -8 % and bonus the rest.
Its the game wall street plays.
Semi index is showing resilience because the sector has not been in fast price mark up phase.The components in the sox are rolling in wonderful earnings as reinvestment into leading edge technology has built a positve Book to Bill for several months now.Earnings from chip makers intc and Tsmc today are at record levels as more widgets with miniature IC are being producxed than ever before.
The sox is showing the the semi sector is maturing into a stable business with fewer players (all of whicvh have fortress balance sheets) and are no longe succumbing to the PC cycle.Even Intc confirmed it had stablized - that was the last hokus pocus fear that took the stock down.
Don't stay short to long in here Fintas.
It is being pulled off on fear mongering as the corporations behind the stocks and its variable price are minting money.
A retest of the bottom and a 90 adv/decl day will signal the end to this dip.Don't be short by that time.
Bob |
