[First appeared on Seeking Alpha on July 18, 2012]
We had a long position in Intel (INTC), but sold it prior to earnings season as the macroeconomic environment deteriorated and Advanced Micro Devices (AMD) cut its guidance. On a long term basis we view Intel very favorably, but we wanted to reduce the risk in our portfolio in advance of an uncertain, and potentially disappointing, earnings season. In fact, Intel cut its guidance and seemed pessimistic about the macro environment in its 2Q 2012 earnings release and conference call. We are again considering adding Intel to our portfolio, but the question is whether to buy now or wait for a lower price, assuming that investors will turn away from the stock as a result of the guidance cut. In this update we will analyze Intel's 2Q results using our six question earnings checklist to better understand Intel's trends and the implications for the general economy. We will then discuss our strategy for investing in Intel going forward.