Buying now and waiting for the holiday shoppers: Hardware, Software and Internet Media (AMD, IACI, INTC)

Semi conductors, software and hardware manufacturers nearly always do poorly in the summer.  That when I like to buy them.  Today I did some shopping as these stocks continued to under perform the overall market. 

Just wait until Winter:
1. The market wakes up and remembers that online holiday shopping will kick in (good for hardware and media)
2. Focus on Microsoft's new operating system (Windows Vista) will come back (pent up demand from computer buys waiting for the new operating system will spur computer demand - and even if it doesn't the market will still talk up the hardware stocks around the software release).

Today's shopping list:
Added to position in IAC/Interactive Corp (IACI) - paid $24.75.  The internet media explosion in advertising has not stopped.  The company's main asset is still Home Shopping but Barry Diller will continue to pickup little properties and take more advantage of the ongoing increase in the online advertising spend.   Right now, IAC is out of fashion. I am betting that will change by year end and the stock will rally.

Bought  Advanced Micro Devices (AMD) - paid $17.39. It was a mania on the way up as everyone was predicting the demise of Intel and the rise of AMD.  Well, now thing are overdone on the way down.  And now it's cheap enough to buy. I started out with a 1/4 position in the stock.

Assigned on Intel. I was short $17.50 puts that expired over the weekend. The puts were assigned. (I was forced to buy Intel at the strike price.)  I am quite happy with Intel at this price.  I sold these puts for $0.40 back in March, so my cost for this purchase of Intel is $17.10.

 

I own and previously owned IAC/Interactive Group, Intel, Microsoft.  AMD was a fresh buy today.

Disclaimer:

Nothing in this blog is meant to be specific financial advice or a recommendation to buy or sell.  I do not give investment advice.  Do your own research.  Do not rely on anything in this weblog to make investment decisions.  I do not log all my trades here. I only describe or mention those that I think might be interesting. Consult an investment professional familiar with your specific financial situation before buying or selling any security.