Re: My claim is based on the observation that enormous buy-back of shares does not increase the price of INTC shares. Enormous dilutions of AMD shares were often followed by exuberant increases in share evaluation.
You can't possibly believe that this is the establishment of a new investment paradigm.
"Stick your finances in the toilet, and watch your stock skyrocket!"
Seriously, AMD's stock price is no longer evaluated as it once was, at $40, but rather it's barely above a speculator basis of $6. Once flap of a butterfly's wings can cut it in half.
Intel's stock buyback is an appropriate and necessary program, and it will get results when large investment firms start buying back into the stock. I believe that this will be a short term event. Intel is finally showing that they can produce solid, reliable growth, even in down markets. Their cost cutting, and their product competitiveness is producing results, and their growth opportunities make for some interesting upside.
If I weren't completely certain that Intel was an obvious investment, I'd have sold some of my holdings and diversified long ago. But I've held my shares because I've been confident in Intel's strategy, and I believe that eventually, they will be rewarded.
I don't think that strategies need to be changed, just because there isn't a favorable response. The Street isn't always right, and if Intel switched directions, they could very well end up in an even more unfavorable environment. I think the strategy is sound, and if they continue on the right path, the stock will go up. Unfortunately, you just need to be patient.