I entered a limit order this morning that was 15% below my cost basis on Intel. I never thought it would have executed so soon. With the beating that HPQ (-12.2% as of writing) has taken today along with a downgrade of ARMH and a UBS downgrade of INTC, shares are down over 4%.
It’s true that PC sales are expected to be slow but Intel is making a push into the mobile market and they still have great margins on server and workstation processors. You definitely can’t count them out. I believe INTC has been unfairly punished and I attribute a lot of the selling due to fear. We all know what Buffett said, “…be greedy when others are fearful.” I am taking advantage of the weakness to average down.
I bought 102 shares of INTC at 19.38/share. This purchase lowers my cost basis to $21.66/share from $22.80/share. This also makes Intel my largest holding now, almost 9% of my portfolio currently.