Watching Intel (INTC): The Time Will Come to Wade Into The Pool.

At some point Intel  INTC is a buy.  This stock is being sold because it is losing market share to AMD and management is not impressing portfolio managers and analysts with earnings downgrades and their lack of a good turnaround plan.   The company is out of favor with the street.  

Intel is a big company full of smart people with some great marketing and production arrangements.  CEO Paul Otellini (or some new management) will get scared and figure out how to turn this situation around in the next 6-24 months. And buying when the company now is on portfolio managers' stocks-not-to-own-list seems like a nice two-year trade to me.  

I'm looking closer at setting my downside target.  I am thinking $15.00-17.50 is where I put a toe in the water and grab a few more shares.  (the p/e ratio on 2007 First Call earnings estimates of $1.20 would be 12.5-14.0).  But I won't really step in until I see management looking more afraid and proactive than they do now.

I would like to see occasional business columnist Laura Rich of the New York Times do one of her Saturday CEO interviews of Otellini so that investors can find out if he does have a plan.

Disclosure: I have small (1/6) position in INTC and am short July 17.5 puts in a small size.
Nothing in this blog is meant to be a recommendation to buy or sell.  I do not give investment advice.  I do not log all my trades here only once that I think might be interesting. Consult your own investment professional before buying or selling any security.