Friday, February 12, 2016

Extra stock bought February 2016: Intel


Intel, an American processor company

Intel is another one of those American giants that have been, and interestingly enough, still are being treated poorly by the market. They are down at a P/E of 12 and they pay a 3.2% dividend which is fully acceptable. The market started to strongly dislike them for failing to take over the smartphone/iPhone. It is of course bad that they did not take over that and given time I hope their foot will open up that door more and more but what was in a way forgotten was all the server power that was needed when the internet usage exploded due to this kind of equipment. Intel happily provided the best processors for those servers.

So, yeah, they failed but could still profit from the development indirectly. The competitors of Intel are not doing very well today and many of them are having difficulties. Intel made 11 billion USD in profits last year. It was an acceptable year. As long as the core business of Intel will keep generating these kind of earnings they will be able to grind down new competitors. The day their core business is being challenged that day the true difficulties will start for Intel. AMD did a good job there for a while but today they are a shell of their former glory. Qualcomm is doing very well and is the next competitor for Intel to grind down. At least I hope so but one never knows for sure.

The previous time I bought Intel was back in 2013 when the P/E was even one step lower with 9.7 and a dividend payment of 4%. Now it was high time to buy some more again of this wonderful company!

I therefore bought 35 shares at a cost, including fees, of 973.55 €. This means that I now have 135 shares in Intel and my total investment is up at 2618 € which means a share price of 19.39 € including the fees.

To find out more regarding Intel then please click on analysis of Intel 2016.

If you want to see my current Stock Portfolio then click on the link but the portfolio will not be fully updated until the end of the month.

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