A True Role Reversal

 | Oct 18, 2011 | 7:25 PM EDT
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Between Intel (INTC) and Apple (AAPL) right now, with Intel trading up big after the bell, and Apple down a similar amount on a percentage basis, I would rather take Intel.

I think people are going to be very worried about how there's nothing out there looming, lurking that could be positive in the out years for Apple.

But Intel? It's so cheap, who cares?

Which one, however, is really cheap? In reality, after you back out Apple's cash, it trades at pretty much the same price-to-earnings multiple even though Apple's growth rate is much, much faster than Intel's.

We have, however, a momentum driven market, and Apple just lost it, and Intel just gained it. I think that Intel could pick up buy recommendation after buy recommendation after buy recommendation.

But nothing like that is coming for Apple.

So, Apple, amazingly, has become a "show me" stock.

And Intel, after all of these years in the wilderness has now shown me. It's a true role reversal that explains, quintessentially how hard this market really is to navigate.

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