The Ignorant Investor

Down another percent and a half as of writing. P/E on trailing earnings at 13.33 with a 2.20% yield. This stock has been a huge loser recently, and the long drawn out slide in this stock shows just how sour Wall Street has gotten on big cap tech.

Yes, I understand that Intel and Microsoft are no longer the huge growth stocks that they once were. They're now cyclicals tied into capital spending and business investment, just like any other equipment maker. But there's a point where you have a company that has little debt, good cash flow, etc., and you have to wonder why its being valued so far beneath the rest of the market. A pretty young lass she may no longer be, but can she have turned into an ugly stepsister as the market seems to think?

With this drop, I may have to buy in here. Not with the hope of seeing some huge rocketing in the share price. But just counting on a little return to rationality. A move from the current P/E to that of the market - from 13 to 17 or 18, would bring about a 23% return.

Or I may hesitate and stay in cash. If a solid if currently uninspired company like Intel can get this kind of treatment from the market, it might signal what's down the road for the major stock averages overall.