Comments on INTC?

Reaction to earnings was fairly neutral, judging by AH activity (slight rise in share price). Bad news, perhaps not as bad as some feared, and difficult to determine exactly when things will start to look rosier for the company (Q2 probably isn't going to be very nice for the company either).

I'm fairly interested to see how this trades over the next few days, tomorrow should be a very good indication of where things will trend from here. I'm actually fairly tempted to wake up early tomorrow morning and put on a trade if it shows any strength intraday...

Intel has some pretty nice stuff in the pipeline (Conroe, Merom, Woodcrest), but it's difficult to predict how they will be received and exactly when they will benefit the company (probably won't see much impact fiscally until late 2006/early 2007).

http://en.wikipedia.org/wiki/Intel_Next_Generation_Microarchitecture
 
intc shud be fairly strong tomorrow, i cant recall an instant when somethin' went up 2-3% cuz of ah earnings'n'suddently plunged durin' regular session.
 
"On Wednesday, Intel said revenue for the current quarter is expected to be in the range of $8 billion to $8.6 billion, well below Wall Street's consensus estimate of $8.85 billion. The company went on to say full-year sales would be about $37.6 billion, less than the $41.1 billion to $42.3 billion range Intel provided in January."

""What you're seeing is a little bit of an economic stall, maybe in the fourth quarter and the first quarter," Intel Chief Financial Officer Andy Bryant said in an interview."

Clearly i have no idea how the markets work cause i was under the assumption that if a stock does not meet their financial "expectations" when reporting their earnings along with lowering their full-year sales outlook the stock should drop.......can someone explain to me what makes someone buy a stock that just reported earnings that sucked.....have revenue outlook for the rest of the year that suck....and continue to lose market share to AMD?????? I have this feeling that all those people paying 19.95 are going to be in a house of pain in the coming weeks........as they should be!
 
Quote from madmunny:

...Clearly i have no idea how the markets work cause i was under the assumption that if a stock does not meet their financial "expectations" when reporting their earnings along with lowering their full-year sales outlook the stock should drop.......can someone explain to me what makes someone buy a stock that just reported earnings that sucked.....!
More...
The market is a future discounting mechanism. You have to understand that the price of a stock is based on future expectations. Therefore all stock prices more or less reflect future good news and bad news in today's price.

So when news is announced, that news is very likely already in the stock, and bearing the news being much better or worse than what was in the stock already, they will often relief rally or relief sell off. In INTCs case, the news that was announced was likely already in the price of stock.

It doesn't mean it is bulish, it means that positions may have been covered that expected a worse news event, etc.

See?

nitro
 
Quote from madmunny:

"On Wednesday, Intel said revenue for the current quarter is expected to be in the range of $8 billion to $8.6 billion, well below Wall Street's consensus estimate of $8.85 billion. The company went on to say full-year sales would be about $37.6 billion, less than the $41.1 billion to $42.3 billion range Intel provided in January."

""What you're seeing is a little bit of an economic stall, maybe in the fourth quarter and the first quarter," Intel Chief Financial Officer Andy Bryant said in an interview."

Clearly i have no idea how the markets work cause i was under the assumption that if a stock does not meet their financial "expectations" when reporting their earnings along with lowering their full-year sales outlook the stock should drop.......can someone explain to me what makes someone buy a stock that just reported earnings that sucked.....have revenue outlook for the rest of the year that suck....and continue to lose market share to AMD?????? I have this feeling that all those people paying 19.95 are going to be in a house of pain in the coming weeks........as they should be!
More...

Nitro provided an excellent explanation for you, all I would like to add is that GM's action today is a fairly good example of this. Company lost a few hundred million this quarter, but apparently this shows signs of turnaround, so stock rallies.

Generally speaking the market's reaction to news is often more important than the news itself.
 
um....ya...there is no comparison between GM today to intel today......GM's news was better than expected (hence the upward momentum).....INTC's was not (so should have selling pressure)....so no....his description was not accurate when it comes to INTC.....of course future expectations are factored into the stock price.....and what i was saying is INTC did not meet those expectations so who would pay more for the stock.....the company even lowered their future expectations...again...another reason to sell the stock
 
Quote from madmunny:

um....ya...there is no comparison between GM today to intel today......GM's news was better than expected (hence the upward momentum).....INTC's was not (so should have selling pressure)....so no....his description was not accurate when it comes to INTC.....of course future expectations are factored into the stock price.....and what i was saying is INTC did not meet those expectations so who would pay more for the stock.....the company even lowered their future expectations...again...another reason to sell the stock
More...

Well, INTC more or less announced what was expected, so there wasn't really a positive or negative suprise on their part. INTC is not doing very well right now, but the market might be taking into consideration that INTC appears to have some interesting products being launched during Q3 (the Core architecture stuff).
 
A stock being immune to extremely bad news sometimes means that the stock is at or near bottom.

A neutral response is often a sign that all the speculation has been shaken out of a stock, this is especially true when there is low volume on the first day affected by the news.

Also, INTC is at a historical support level.

For these reason's coupled with a strong 12 month outlook have me bullish on intel and considering investing a hefty chunk for the long term.
 
I can honestly say i am surprised that the stock didnt fall more than it did once it ran through the $19's.......but i am guessing it will drop to the 18.40's by tomorrows close...specially if oil goes up any and the S&P starts tankin some more......the stock didnt even think about going upwards when the CEO came out today to announce their new products.......its got no legs anymore.....everybody knows AMD is asswhuppin it and will be for the next few quaters.

good luck with 100k....i hope that you have a 3 year outlook on those shares becomeing profitable! :)
 
You must log in or register to reply here.
Back
Top