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Intel: Value Trade or Value Trap?

The Street whacked Intel on Tuesday after Barclays downgraded shares to ‘Equal Weight’ from ‘Overweight’ and Baird downgraded the stock to 'Neutral' citing “a sharp deterioration in PC-related order trends.

Adding to the headwinds, J.P. Morgan analyst Christopher Danely said in a research note that checks with Taiwanese chip suppliers showed a downturn in orders, indicating that deals for personal computers are "falling off a cliff."

How should you trade Intel, now?

Around $20 I think Intel looks interesting, says Brian Kelly. I thinks the weakness is an opportunity to buy a growth company at a good valuation and get a dividend yield.

I also think Intel is very cheap, says Tim Seymour. I’m a buyer.

Under $20 a long position looks attractive to me too, adds Pete Najarian.

Read more:

Fast Money executive producer John Melloy wrote Intel at length in his daily post. Click here to read “Is the iPad Killing Intel"



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Trader disclosure: On Aug 10, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova owns (AKAM), (BAX), (FCX), (MOS), (PFE), (SU), (XBI); Terranova owns (GLD) Calls; Seymour owns (AAPL), (BAC), (GOOG), (POT); Finerman owns (AAPL); Finerman's firm owns (ARM); Finerman & Finerman's firm owns (BAC); Finerman’s firm owns (BBY); Finerman's firm owns (LEA); Finerman’s firm owns (KFT); Finerman & Finerman's firm owns (JPM); Finerman & Finerman's firm owns (RIMM); Finerman’s firm owns (TSX); Finerman’s firm owns (GYMB); Finerman’s firm owns (PLCE); Finerman's firm owns (WMT); Finerman's firm owns (DAN); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Finerman’s firm owns Russell 2000 puts; Pete Najarian owns (CSCO) call spreads; Pete Najarian owns (CTRP) calls; Pete Najarian owns (GS) calls; Pete Najarian owns (RIMM) call spreads; Pete Najarian owns (AKAM) calls; Pete Najarian owns (HPQ) calls spreads; Pete Najarian owns (V) call spreads

For Brian Kelly:
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own (PFE)
Accounts managed by Kanundrum Capital own (C)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (MED)
Accounts managed by Kanundrum Capital own (ANDE)
Accounts managed by Kanundrum Capital own (ORI)
Accounts managed by Kanundrum Capital own (INTC)
Accounts managed by Kanundrum Capital own (ECA)
Accounts managed by Kanundrum Capital own (UNG)
Accounts managed by Kanundrum Capital own (SPY) Puts

For Hugh Wynne:
Wynne maintains a long position in Duke Energy Corp. (DUK)

Accounts over which Bernstein and/or their affiliates exercise investment discretion own more than 1% of the outstanding common stock of the following companies EIX / Edison International.

The following companies are or during the past twelve (12) months were clients of Bernstein, which provided non-investment banking-securities related services and received compensation for such services AEP / American Electric Power Co Inc, D / Dominion Resources Inc, DUK / Duke Energy Corp, EXC / Exelon Corp, FE / FirstEnergy Corp, PCG / PG&E Corp.

An affiliate of Bernstein received compensation for non-investment banking-securities related services from the following companies AEP / American Electric Power Co Inc, DUK / Duke Energy Corp, EIX / Edison International, FE / FirstEnergy Corp, PCG / PG&E Corp.

In the next three (3) months, Bernstein or an affiliate expects to receive or intends to seek compensation for investment banking services from AEP / American Electric Power Co Inc, D / Dominion Resources Inc, DUK / Duke Energy Corp, EIX / Edison International, EXC / Exelon Corp, FE / FirstEnergy Corp, NEE / NextEra Energy, PCG / PG&E Corp.

Dennis Gartman
***No Disclosures***

Peter Boockvar
***No Disclosures***

Simon Leopold
***No Disclosures***

Joe LaVorgna
***No Disclosures***

Scott Natons
***No Disclosures***

CNBC.com with wires.

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