Intel is still in the game.
Five years ago I bought Intel for several reasons. It was the clear leader in microprocessors for desktops and laptops. Given its leadership position, it generated a healthy cash flow. The market had given up on a company that basically dominated the microprocessor for many years. Their PE, I recall, was in the low teens.
The market had discounted Intel as a "has been' player because the PC market was slowing. I saw it as an opportunity to own a cash generating machine that could redeploy their capital to face new challenges. Today Intel has shown they are moving readily to remake themselves by using their cashflow wisely to purchase smaller, but cutting edge technology firms.
As always, I approach investments from a value proposition. This often means buying organizations that have "good bones", but are not in "vogue" at the time. Additionally, Intel provided a nice dividend to pay me while I waited.
The market is often as impatient as a teenager wanting a new iphone. I grew up in an environment that you didn't want something and immediately get it. I learned, the hard way, to be willing to wait. Good things come to those who wait!
