Intel
AMD. A big bagrain or a big fraud?Yesterday we´ve probably seen one of the best daily performance from AMD shares in company history. Why is that? Licensing agreement with the chinese. The chinese will be able to develop their own server SoC with a cooperation and based on AMD technologies. Means, they will develop their very own version ot the latest "Opteron" generation and pay to AMD for it.
It is not huge only for AMD, it can be huge for the whole sector. There is someone who´s talking about start licensing the GPU technology as well and, based on ARM Holding experience, that wouldn´t be a bad idea at all.
If happens, this will bring the chip makers to a new stage of competence for market share: the fight for the ending client would lay on the shoulders of license aquirees while a hypotetical AMD, Intel and else may surely leave all or big part of manufactoring operations and concentrate on high value-added R&D. AMD is not the first one to do it and not the biggest, and not the most advanced. But it is the chance for AMD itself to escape from a deadly trap while others haven´t followed the path. Capturing a solid piece of this market will be more than enought for AMD to come back to a solid profitability, recovering strong business model and availability to design a long-term strategy.
Which are the bad points? If AMDs experiment with the chinese show the path is good, Intel is bigger than AMD. AMD arrived first but remember what happened with K8 CPUs when Intel took the Core2Duo family out of the hat. If I were AMD, I´d start securing as much long-term contracts as possible before the others will realise the idea is good. If they secure at least 3-4 more licensing contracts all over the world, it is a strong, solid beginning. Tune your Twitter to news from AMD and Intel, it can be busy.
Second point. Not far away from now, we´ve already seen some ineficcient chinese enterprise to bankrupt. The main question here is: what is THATIC? I recognize, I googled it for 10 minutes and could only find some unconfirmed relationship to China Academy of Sciences (CAS) or Dawning Information Industry. If that´s the case, AMD is in good hands. But for now, the whole licensing agreement looks rather a desperate move. At 2.60 per share you can take a risk. But at 4 per share.... And also that number, 293 million USD in cash. Not trully enough for the whole bunch and complete support on AMD server technologies, right?
Third question, what the US Government will think? There was no reaction for now, probably, because of the second point. But if the deal starts becoming a crude reality and the Gov will find itself in a situation when the rest of manufactorers, specially, Intel, will want to follow the path, AMD may face serious problems which will require quick and severe actions.
Technical analysis confirms: 4-5 figures per share has been a massive frontier and critical level for AMD shares since always. Yesterday, it got rid of weekly 200 MA and WMA (on chart) but stopped at 3.99 and I don´t think that´s coincidence. AMD still has a lot to deliver.
As said before, tune your Twitter to AMD, follow the evolution of the company and check Q2, Q3 and Q4 reports. If the shares start climbing little by little, go over and secure 5 figures per share, and the results are solid, and we get more information about the chinese partner, jump in. If the quote gets stuck somewhere in 3-5 range, this is a patience zone and good option for these who bought at 1.90-2.50 to secure partial profits.
MU: Micron offering a long term long opportunityI like the extended base that formed here, before confirming a weekly uptrend signal, according to 'Time at Mode'.
For those not familiar with the technique, it allows you to read the order flow, track the accumulation and distribution, as well as understand and time the trends present on chart, to get optimal trade entries in any market.
If you combine this powerful methodology, with fundamental analysis, market sentiment tracking, and reaction to news events, you can time entries with great precision.
MU is offering a great weekly long trade here, potential is considerable for this stock, and I'm looking to capture the emerging uptrend I anticipate will take place from here onwards.
Enter longs at market open, if we get a dip towards 10.50 or near that level, add to the position. Risk a drop to $10, for upside well over $14.30.
If interested in my trading signals, or in personal tuition, contact me privately. I'm offering a considerable discount on a packaged course which includes access to my private trading signals list for a year.
Cheers,
Ivan Labrie.
Earnings announcement* for INTC: Oct 13, 2015INTC Earnings Date
Earnings announcement* for INTC: Oct 13, 2015
Intel Corporation is expected* to report earnings on 10/13/2015 after market close. The report will be for the fiscal Quarter ending Sep 2015. According to Zacks Investment Research, based on 19 analysts' forecasts, the consensus EPS forecast for the quarter is $0.59. The reported EPS for the same quarter last year was $0.66.
Highlights from the analysis:
1) INTC's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.31, which illustrates the ability to avoid short-term cash problems.
2) The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market on the basis of return on equity, INTEL CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
3) Regardless of the drop in revenue, the company managed to outperform against the industry average of 11.7%. Since the same quarter one year prior, revenues slightly dropped by 4.6%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
4) The gross profit margin for INTEL CORP is currently very high, coming in at 78.60%. Regardless of INTC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 20.50% trails the industry average.
DOW JONES OVERVIEW: INTEL RESTORES TRENDSIntel is restoring its long term uptrends.
Recently the price broke above 10-year uptrend border, which is marked by the upper 1st standard deviation from 10-year mean.
The breakout is aligned with a break of 1-year downtrend (price broke above the lower 1-st standard deviation from 1-year mean)
If the upwards impulse continues, price will also likely to revert up to the 1-year mean, which is above 5-year uptrend border,marked by the upper 1st standard deviation from 5-year mean.
Which will in turn restore the 2nd long term uptrend (5-year), returning Intel into long term appreciation mode
Everybody's Gone Shortin' - Shortin' U.S.A.In this post I would like to put together some previous stock market calls (still valid), as well as add two more promising shorts. It's been a rough week for US stocks culminating in a clear break of the Head&Shoulders' neckline at 2045. This kind of pattern is usually referred to as "Complex H&S top" , because there are multiple peaks and its "head" is a H&S pattern itself. The traditional target is set in the 1945 area , though we expect a move of greater magnitude. There is a more traditional H&S in LinkedIn. It calls for a sizable move to the downside. Another bearish pattern is a Rising Wedge, or Ending Diagonal, in Bank of America. The first target here is $15 area, which is some 10% from here.
I'm still positioned according to previously published ideas:
Baidu
IBM
Intel
and Procter&Gamble :
All of them are currently profitable.
Best of luck, mates
Intel Demand BuyS&P up and and has pulled back to objective demand,
Intel is also up and at an objective weekly demand level
from mid nov 2014, a pause to rapid indicating there was
actually far more demand then sell orders there.
It is my hope that there will be some left over buy orders
or/and that after this sharp move down there will be a
greater Suppy/demand imbalance. thus I am getting long
if price ticks above 34.35. With a time stop as usual incase
momentum doesn't pick up.
Intel Corp Daily (08.09.2014) Technical Analysis TrainingThe Intel Corp (NASDAQ:INTC) Daily Diagram Technical Analysis Training shows the following:
The (INTC) share has reacted from Tenkan Sen and the support line exactly on 2.618 of fib. This support line is above the KUMO, which means that the INTC is bullish in long term. The weekly diagram shows bullish trend and the monthly is bullish too.
So the first thing in mind is the $34.52 support. MACD has a divergence that has to overcome in order the share continues the uptrend.
There is no special candlestick pattern. The share is above the KUMO, the Kijun Sen (blue line) and above the Tenkan Sen (green line) too.
There is no special pattern. The share follows Fib.
Stay aside. Long if the share closes positive at its' high today. Stop loss and short under the support line.
Intel Corp Daily (13.08.2014) Technical Analysis TrainingThe Intel Corp (NASDAQ:INTC) Daily Diagram Technical Analysis Training shows the following:
The (INTC) share has reacted from Kijun Sen and the support line. This support line is above the KUMO, which means that the INTC is bullish in long term. The weekly diagram shows bullish trend and the monthly is bullish too.
So the first thing in mind is the $34.49 target again. MACD is weakening its bearishness and RSI =58 = bull.
There is no special candlestick pattern. The share is over the KUMO, the Kijun Sen (blue line) and it tries to breach the Tenkan Sen (green line) too.
There is no special pattern. The share follows Fib.
Long for fib 2.618 with stop loss the support line.
Intel Breaks Gap Window, Headed To Gap Fill At $31.7Intel Corporation (NASDAQ:INTC) broke gap window today. Gap window is a technical support level (in this case), created by the gap up Intel had following their earnings announcement. Once this level is broken, price generally gravitates to gap fill which is the closing price on the daily chart prior to the earnings report. This will be a big support point for the stock. The Intel Corp gap fill level is $31.75. Please note the chart below.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com