INTC: Weekly and Monthly Analysis

17 ene 2016

Company highlights that stick out:
- Growth YoY 1.4% in revenue, but -2.7% in net income, and earnings per share was flat at 0.74.
- Intel acquired Altera at the end of Q4. Altera's annual sales were aproximately $1.7 billion at the time the paperwork was signed. Subsequently, Intel management included this in its 2016 guidance, which amounts to about an extra 3% of to Intel's sales.

Intel's Transition Period:
Management said, "Our future as a company will increasingly be a product of the virtuous cycle of opportunities in the data center, memory, and IoT market segments," which delivered " nearly 40% of Intel's revenue" and "more than 60% of Intel's operating margin in 2015." And since these three markets "delivered $2.2 billion in profitable revenue growth in 2015 alone," management believes that building the company in that direction for 2016 is one of the best thing to do.
Intel's P/E ratio is low; it is 12.8 times trailing earnings. Its dividend yield about 3%.
fool.com/investing/general/2016/01/16/intel-corporation-reports-solid-q4-results-share-2.aspx?source=eogyholnk0000001&utm_source=yahoo&utm_medium=feed&utm_campaign=article


The Technical Picture:
Important Green Zones in the $27 to $29 range on the chart go back to the years 1999, 2001, 2004, 2005, 2007, 2012 and 2014. These are the areas where I am nibbling at acquiring INTC stock.

Alternate scenario that is well within the realm of the Inverted Head and Shoulders Pattern:
tradingview.com/x/piINsAGU/

Worst-Case Scenario breaking the Inverted Head and Shoulders Pattern:
tradingview.com/x/T0bLFadD/

Conclusion: If buying Intel, I don't expect to sell it anytime soon. I will just buy more at special levels of support: $29, $27.43, $26.46, $23.44.

I am wary of buying at $29 abd holding it more than two weeks since I anticipate a greater fall in the SPX500. So, because of that, I may withhold on buying until $27.43, $26.46 and $23.44.

My target is $43 - $50.