Trading Intel At $20
Intel took it on the chin Wednesday after lackluster Q4 earnings.
Is it time to throw in the towel, or take a second look?
It’s been a hard ride for Intel says Guy Adami on CNBC’s “Closing Bell,” no doubt about that. The stock has been down 29% since December 4th but gross margins were north of 58% and better than the Street is looking for. I think things are fine at Intel and at $20 it’s cheap.
How about gold?
I’m cautious, replies Adami. I understand the arguments in favor of gold. But gold isn’t truly a commodity is the same way as natural gas or oil. There’s no real use for gold – it’s driven by speculators.
I would say 90% of investors currently in gold have experienced the way it goes down, he adds. It does so in a precipitous way. This trade never ends well, for gold bulls.
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Trader disclosure: On Jan 16, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (INTC), (YHOO); Najarian Owns (C), (CSCO), (BIIB), (FRE),(MCD), (TIBX); Najarian Owns (AAPL) Options, (YHOO) Options, (WM) Options; Finerman's Firm And Finerman Own (CROX); Finerman Owns (GS), (TSO), (VLO), (WMT), (YHOO); Finerman's Firm Owns (MS) Options; Finerman's Firm Owns (MSFT) Options; Finerman's Firm Owns (MDY) Puts And Is Short (MDY); Finerman's Firm Owns Russell 2000 Puts And Is Short (IWM); Finerman's Firm Owns S&P 500 Puts And Is Short (SPY); Finerman's Firm Is Short (IJR), (IYR); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts