Intel CorporationUpdated INTC - Where fom here
I entered the stock at $52.50 back in January 2021, now a month later and after an impressive rally the stock is sitting just north of the $60 mark, around the IBKR analyst consensus price, and has closed the August 2020 gap lower.
Although I am a long term investor and not a trader I tend to review my positions on a regular basis and since my last post it's been about a month. (tradingview.com/chart/INTC/nJ0mT0PE-INTC-Should-I-stay-or-should-I-go/)
A quick technical checkup:
Quick Fundamentals (based on Refinitiv Stock Report:
* Multiples trading largely in line with peers and broader market
* Strong fundamentals such as high profit margins and relatively low debt
* EPS estimates are flat, i.e. limited growth potential
Conclusion:
* The stock has catched up significantly to its peers since the drop off end of 2020 and seems now in a fair-value range
* Todays sell off is linked to the broader market and has limited impact on my decision
* Fundamentals remain good but i am somewhat concerned about the EPS outlook as driver for price growth
I will be looking to sell short term calls around $62.50 as an exit for my current position.
Although I am a long term investor and not a trader I tend to review my positions on a regular basis and since my last post it's been about a month. (tradingview.com/chart/INTC/nJ0mT0PE-INTC-Should-I-stay-or-should-I-go/)
A quick technical checkup:
- Formation of a double top, that indicates the stock some resistance and might be in for a consolidation / price correction.
- Major resistance will be at the 1y high of $65
- Price currently testing the short term uptrend support line
- MACD and RSI seem toppish
Quick Fundamentals (based on Refinitiv Stock Report:
* Multiples trading largely in line with peers and broader market
* Strong fundamentals such as high profit margins and relatively low debt
* EPS estimates are flat, i.e. limited growth potential
Conclusion:
* The stock has catched up significantly to its peers since the drop off end of 2020 and seems now in a fair-value range
* Todays sell off is linked to the broader market and has limited impact on my decision
* Fundamentals remain good but i am somewhat concerned about the EPS outlook as driver for price growth
I will be looking to sell short term calls around $62.50 as an exit for my current position.
Trade closed: target reached
Closed the trade at 60.75 in yesterdays trading. Too much volatility atm and I am happy to lock in some profits.
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