Comments on INTC?

I am not so into technical analysis and would consider myself rather as long-term investor. But I have kept a close eye on to the Intel stock for about a year: here are some thoughts about Intel:

(a) The first thing that struck me was the chart: what the heck is fundamentually wrong with Intel that keeps its share price falling down over and over again to a lousy 19.12$.

(b) Intel isn't such a bad company that after all, being a global player in the technology sector. Although there is some competition coming from AMD, I have to say that Intel has nonetheless maintained a very strong position and and quite stable market share. I have no precise data about the market shares of both companies, but I believe that Intel is aware of its current market position and keeps its marketing branch busy.

(c) I have lately read in the news that Intel cut its EPS guidance for Q1. Could someone explain to me why this is so?

(d) Another positive effect (for Q3-Q4) on the stock could be Apple's migration to Intel processors instead of Motorola processors.

All in all, I could imagine that Intel is a buying opportunity at the price levels its shares are trading these days. (I would be happy to receive some feedback on this one... :D )

Let's hope that Intel's new slogan "Leap ahead" becomes reality in terms of profitability as well as shareholder value. :)
 

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IllusioN..well thought out post. Agree with all you are saying and I'm holding INTC with a $21 basis at least thru the summer. But retail traders never have the inside scoop so who knows:confused:
 
I am also long and I am selling covered call as a cost reduction while I am waiting. Based on my 10 years of investment experience, don't expect the uptrend be gradual. Tomorrow it can close at 20.20!!! and the the next day at 21 and you will be shocked how it got there. Then it might act so strong that you won't be able to buy it even at 20.99!!!. I can see in the last 5 days that INTC wants to outperform the market but it seems that we have to wait a little bit more. Lets put it this way, investment is full of risk but INTC seems that has the lowest risk.If you have INTC shares you might get bored or impatient but you can sleep well at night. Nothing like GOOG or AAPL which are overpriced and are speculative stocks.
If you believe in Dow's Dog theory, you should buy INTC because INTC was one Dow's dogs last year.
 
ok here is another thought. Im just trying to make a case i guess why INTC should be a buy rght now - well if the mrkt starts pulling back and NSA and s&p start taking a dive, maybe the correction that a lot of traders are waiting for, could it be that maybe money will start flowing out of the speculative stocks like during the .com era, (maybe not so dramatic this time) and would start flowing back into the safe haven stocks - maybe like INTC ???
I guess anything is possible, but if INTC doesnt provide us with some good guidance in april, then this could possibly bring the stock back up. Just a thought.
 
DonnaV

Where is your hard "STOP"? I do not know your time frame, do not know your risk parameters, etc. But i do assume you do know your lunch point, to say you will hold intel for the summer is a wide open situation.

Surely you mean you intend to hold intel through the summer unless it hits my STOP which is at so and so point. Right?...............:)

PS, to the other guy that said, the money should flow back to good stocks (or something like that), defending a position with assumptions from the past is a folly. Who says that intel could not turn to dust tomorrow? General George Custer was always refighting the last victory until one day he looked up and said to himself "Look at all those Furious indians" (paraphrased for the lady). Forget intels past victories, mkts are supposed to look to the future..........:cool:
 
I just saw 1000 Call 20 sold at 0.2. With the current price and only 6 days to option expiry date that seems waste of money. I believe we are close to a surprise. I am long and happy.
 
AMD reports Q1 EPS of 38c vs consensus estimates of 29c
Reports Q1 revenue of $1.33B vs consensus estimates of $1.332B. AMD sees Q2 sales flat-to-slightly down vs. Q1 vs consensus estimates of $1.34B.
 
Quote from Batterup:

DonnaV

Where is your hard "STOP"? I do not know your time frame, do not know your risk parameters, etc. But i do assume you do know your lunch point, to say you will hold intel for the summer is a wide open situation.

Surely you mean you intend to hold intel through the summer unless it hits my STOP which is at so and so point. Right?...............:)

PS, to the other guy that said, the money should flow back to good stocks (or something like that), defending a position with assumptions from the past is a folly. Who says that intel could not turn to dust tomorrow? General George Custer was always refighting the last victory until one day he looked up and said to himself "Look at all those Furious indians" (paraphrased for the lady). Forget intels past victories, mkts are supposed to look to the future..........:cool:
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In all honesty I do not have a "hard stop". INTC has been very good to me in the past and at this time there is no urgency to liquidate the shares I have. They do pay a very small div so I at least get "something" while I wait. I realize that I could do much better with the cash sitting in a money mkt fund but from previous experience I know that INTC can suddenly gain favor from the gods and go up very nicely. Some stocks I can be very patient with and this happends to be one of them. If I do like a stock for fundamental resons I'm willing to give it a year to prove itself.
 
Batterup I'm also neutral to short on AMD as I've got a put calendar going on AMD and do not expect it to trade higher...AMD is over valued and INTC is under valued from a very fundamental view...imo
 
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