Jury,
May I respond to both of your recent posts at the same time? First Intel:
You are correct that even logical people get "hurt" and are reluctant to return to a stock. Add a little logic, and US tax law. If a stock is sold for a loss, you cannot climb back in until 30 days have gone by. I think this will delay a recovery for the short term. You got out of INTC yourself, not too long ago, if I remember.
I do expect a recovery to the 90's, for the reasons you have mentioned, namely market dominance, and the fact that the core business doesn't mind paying a few extra dollars for consistency and pretty good reliability. But we will never see PE ratios like MSFT, who packages a large empty box around a CD-ROM and gets as large a margin as it likes.
Second: In your earlier post, you got into RMBS at around 57. That's where I got out. You might remember we discussed that earlier. It will climb again, but I don't think that it will be soon, unless there is a huge earnings surprise. I too am car shopping, with RMBS and NOKA proceeds, but my car will probably be a lot smaller than yours!
Regards,
MS |
