Figuring out what to do with INTC has been on my mind for a while. I'm obviously not happy with the dividend freeze and a freeze is reason enough to consider a sale. I'm also concerned about poor operational performance and a general trend of declining PC sales. Intel has been trying to pick up the slack by expanding into mobile, which we all know has been a disappointment so far. If mobile doesn't work out, this company could be in huge trouble. I've held shares of this stock for two and half years. You can bet my patience is wearing thin.
On the other hand, the new mobile products hitting the market seem to be a step ahead of the competition. INTC has a real opportunity to make a splash soon. Still, I wonder if grabbing control of the mobile processing market (with the lower margins) would be enough to offset the declining PC business over time? Or maybe it will be a massive success? My hunch is that Intel will end up doing well in mobile. With all the r&d, they damned well better be! Throw in a decent valuation, and it might be worth sticking around to find out.
I decided to replace 92 shares, and see what happens with the other 92 shares. As you can probably tell I'm still torn with INTC; valid arguments can be made either way.
Philip Morris is due for a dividend increase later this month. I don't know if we'll see a 20% boost like a few years ago, but I'm happy with a 6% raise. That's enough to beat inflation and improve my purchasing power.
PM is now overweight within my portfolio at approximately a 6.7% weighting. Nothing to be especially concerned about, and it ought to work itself out organically as I build up to 50 positions.