Ruthless trader

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Jun 1, 2006 1:06 PM
Subject: RE: INTC
Body: INTC closing above 18.00 just gave itself another chance from the lows I discussed earlier.

Folks, today, INTC is erupting higher against the Dow!!! When I couple the last few days's behavior, it appears that INTC is silently being accumulated... and is about to smike the short float. I have witnessed this behavior in the past (when a stock trades against market sentiment), and it has resulted in massive short covering propelling the stock higher.

Other factors playing role are the release of their Woodcrest Core duel server patform which is not only better than AMD's but 120 dollars cheaper. Shorts, please be aware.
 
Garnett & helfrich Capital, a venture buyout company in San Mateo has expressed an interest in playing a role with Intel's communication and application processors-- which are both for sale as part of the 90-days restructuring plan of Intel's money-losing businesses.

This gesture may very explain why Intel was trending up against the Dow for the last 3 trading sessions, while AMD lost nearly 2.20 points. The sale of money-losing businesses has always been considered plausible with analysts.

Moreover, Intel's Menroe Chip was evaluated by several analysts and was given high remarks. The chip will be out and shiiping beginning tomorrow.
 
Folks, CEO Terry Semel has agreed on an annual salary reduction from 600,000/year to 1 dollar/year through 2008 in exchange for 6 millions of the company's stock options at an exercise price of 31.59 (last Wednesday's closing price). Also, as part of this renegotiated salary contract, Semel will be eligible to receive a bonus of up to one million stock options annually through 2008.

Aside from the bullish fundamentals and technicals, which I will be commenting on later in excruciating details, I consider this gesture very tenacious and assuring of higher share prices to come!
 
This is just a stunt. I wouldn't read too much in it.

It is specially designed to give confidence to the investors that the stock price will go significantly higher. This confidence will jump start the stock price for the same company performance.

It can be very lucrative for the top executive who signs up to such compensation plans. On the other hand, even if the company performance and its stock price performance don't meet expectations, there are enough other ways he'll make money: bonuses, new grants at lower price, options re-pricing, you name it.
Quote from mschey:

what are the terms of the option.....how long til expiration? My first reaction is this is a great deal for him!
More...
 
Based on most recent regulatory filings, industrila companies in the Standard & Poor's 500 with the most cash, in billions, are the following:

1. Exxon Mobile 36.5
2. Microsoft 34.8
3. Johnson & Johnson 17.2
4. Pfizer 15.5
5. Cisco Systems 15.0
6. Motorola 14.6
7. Aetna 14.4
8. Merck 12.4
9. IBM 12.3
10. Hewlett Packard 11.9
 
AMD is an interesting play here. The short term indicator is bearish, especially after closing below the 30.65 to 30.70 pivatol point. The 6-months chart reveals a support of 29.00. For those who are looking for a swing short trade, initiate a position on a gap up come tomorrow.

However, fundamentals are quite bullish for the long run. The company said that it will increase its capacity at its primary manufacturing center in Germany fourfold from its 2005 levels by the end of 2009. AMD now holds 26% of the lucrative U.S. server-chip business and 48% of multicore processors. Most significantly, AMD's gross margin passed Intel's for the first time last quarter -- 58.5%, vs. 55.1%.

Once could accumulate the shares and hedge with covered calls. The august and september 30.00 strikes are very premium juicy. By the time those options expire, the stock would have created a support and reverse trend to the upside.
 
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