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Re: RobertG post# 70026

Friday, 10/24/2008 11:27:20 AM

Friday, October 24, 2008 11:27:20 AM

Post# of 151757
There has to be a level where yields becoming so compelling that buyers will come in regardless of the growth potential of the stock. At $11/share INTC would have a 5% yield. I can't imagine any major institution (that has any money left) be able to pass on that kind of yield and still have the potential for future appreciation of the shares. Because of that, I just don't think the stock will ever see that price, so in my model $11.50-$12 is the absolute floor for INTC and I don't actually think it will hit that floor. It seems pretty safe to me to buy this stock in the $13-$14 range and load up even more if it goes below $13. My 2 cents anyway.
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