Mega-cap stocks like this one tend to trend down for months after an earnings disappointment, similar to the way Sisco trended down for almost a full year before it finally started to turn things around. With these mega-cap stocks, so much of their float is held by institutions that have to unload millions-upon-millions of dollars worth, so they cannot sell all of that at once. They have to slowly unload those shares over time.
With many funds slowly unloading their shares (hundreds of millions of shares over an extended period of time), that is just too much mass selling for enough "value investors" to come in to stabilize the price. So the "value investors" who are pondering buying the now-cheaper shares are also having to ask themselves if they want to be the one to "catch the falling knife", and if they do buy, how long are they willing to watch the downward trend continue before they throw in the towel as well? The downward pressure should be strong for a while until a firm support level shows.
Therefore, do not buy INTC for quite some time.
Sentiment: Sell
You are correct--It will trade down to below 20 for sure- and maybe down to the 18 area - the big boys want in- but not until under 20 and they will control it down to this level--they do it all the time with this stock! Not time to buy yet!
Your record is not very deep (not many calls) nor very accurate (less than 50%). Your Terex call would have taken much patience to show a break even after it dropped 40% right after you said buy.
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Terex Corp. Message Board
Re: Margin Improvement!
By profitgrowthfirst.May 1, 2012 12:25 AM.Permalink
This stock has a lot of upside.
Terex was $23.18 on May 1st.
Terex was $14.11 on July 25th. DOWN 40% from your lot of upside prediction. Today trades back at $23.60.
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Pacific Sunwear of California Inc. Message Board
Re: Why PacSun Will Be Going Bankrupt
By profitgrowthfirst.May 2, 2012 11:31 PM.Permalink
Yeah, there ya go! Shoot the messenger. The fact is PSUN is going bankrupt; they are burning cash so fast that time is their enemy.
PSUN was $1.47 on May 2nd.
PSUN rose to $2.70 on Sept 24th and currently trades at $1.89 26% above your prediction price.
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TheStreet, Inc. Message Board
Revenue Fell by 9%, Unprofitable and EBITDA Unprofitable
By profitgrowthfirst.May 9, 2012 8:54 AM.Permalink
It is always fun to buy a one or two dollar stock to speculate on a chance to get rich, but this is NOT the cheap stock to take that chance on. This quarter was a disaster but the stock has only come down 12-15% since the quarterly report. It has much longer yet to trend down. Strong SELL!
TST was $1.69 on May 9th.
TST fell to $1.34 and is back at $1.59.
Average volume is 94,000 shares per day. 32m shares float. Pretty small potatoes.
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Alexander, I tip my hat to you; you've done your homework. Yes, my Terex call seems to have fallen flat. Terex has beaten expectations in 4 of the last 6 quarters, but everytime the stock hits $25, it falls back down. It is a very cyclical stock and everytime we get 'scary' news regarding Greece, Spain, Portugal, or 'the China slowdown' the stock loses momentum. As for PSUN, I still think it is going bankrupt. PSUN had earned--and saved--a lot of money from 1995-2000, and again from 2003-2008. However, in the last 3 1/2 years they have squandered that entire pile of cash away and they have yet to right the ship. As for TheStreet, their management has been speaking up the company and its stock for years about how excited they are for the future. Their conference calls are always exactly the same: "(fill in the blank) will help us bring in more revenue per customer, (fill in the blank) will save us on our overhead, (fill in the blank) will bring in new customers. These measures will help us become profitable for the longterm". But it never happens. Maybe one day TheStreet will be profitable, but not for a while anyway.
Google's, Microsoft's, Invidia's, and AMD's bad reports are only going to continue to push INTC lower. This still has another leg down, or more.
Im out. Tired of getting whipsawed.
Woodstock
Sentiment: Hold
16 million shares traded in just the first few minutes, but for INTC the negative outlook outweighs any positive sentiment (other than the fact that the dividend yield gets better as the price falls). Therefore, this stock should continue to have a lot of downward pressure as sellers outweigh buyers, and the 52-week low that was broken this morning should continue to see pressure.