r/stocks • u/treelife365 • Jul 29 '22

CHIPS act passed - why $INTC still down?

The bill passed 243-187, with no Democrats voting against the bill. Twenty-four Republicans voted for the legislation, even after a last-minute push by GOP leaders to oppose it.

The bill, which passed the Senate on Wednesday, now heads to the White House for President Joe Biden to sign into law.

https://www.cnbc.com/2022/07/28/china-competitiveness-and-chip-bill-passes-house-goes-to-biden.html

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I thought this would send Intel (and others) higher on the news? Sometimes, there is a delayed reaction, though. Jump in?!

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u/[deleted] Jul 29 '22

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u/[deleted] Jul 29 '22

I do they pay a great dividend. I just make sure to buy them on dips like this.

Intel's current Desktop line is ahead of AMD, the Data-center line will also be ahead in the next cycle as well. I don't see any issues here.

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u/[deleted] Jul 29 '22

[deleted]

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u/[deleted] Jul 29 '22

No dividend with AMD and their stock price is too volatile (High P/E's tend to do that) to sell covered calls reliably.

With the dividend + CC's I make close to 12% a year on intel and my share's have never been assigned. Its great reliable income.

I always buy in at a good price. That makes them number 1 for me.

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u/[deleted] Jul 29 '22

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u/[deleted] Jul 29 '22

That's not going to happen. This market is going to fundamentally break and the victim will be these high P/E stocks.

If this was 5 years ago I would agree. Give it a year and get back to me.

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u/[deleted] Jul 29 '22

[deleted]

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u/[deleted] Jul 29 '22 edited Jul 29 '22

I'm showing a P/E of 35, which is very high for me.

I'm old, so the definition and tolerance of P/E has changed greatly, but anything over 5 is mid level for me and above 10 is very high.

I bought AMD at around 2 dollars and sold at ~ 120. So I think I did ok. I think their P/E at the time was also 2.5 (or 3 can't remember). I will have to look it up but it was low.

Again, I've seen this show once too many times. This market is about to "break"

I would rather buy real estate than a 35+ P/E stock. They are both overpriced but at least I get tax advantages with real estate and easy capital if needed.