Motley Fool put up an article over the weekend that talked about 3 ridiculously cheap stocks...Intel was on that list, along with Apple and Corning. I thought it'd be worth a peak at the technical charts of each of these stocks. Apple is a stock that's been featured for several weeks, but I haven't looked at Intel or Corning from a technical point of view. Of those 3, Intel looks the most promising. It has just broken out of a complex inverse head and shoulders pattern, and has recently officially broken out of a longer term down trend. Prices are reaching overbought levels right now so it may consolidate here shortly before it can make the next move upward as long as the market doesn't sour...but $22 looks to offer good support now that it has broken above it giving a reasonable safety net. I've put up the charts and discussion on Stockineer, but I just wanted to give you guys the summary here. Good luck!
Looking good guys. I've added further updates to the conversation on stockineer. Price has risen nicely after the breakout. Price is about to hit some heavy resistance around $24, so look for some consolidation...perhaps a bullish flag or pennant pattern. Good luck.
1. The Apple stock was thought out to be a cheap stock at $700, 600, 500 and now there are no buyers at 400. The investors don't think it represents a good value at $400, never mind what the technicals say.
2. INTC is primarily a hardware company, much like AAPL, where the PLC spans over two to three years. At maturity and decline phase, it gets much tougher to squeeze some profits.
3. Surely, it wouldn't be fair to compare Intel with IBM where the later sells for a multiple of 11. But nevertheless to argue that INTC would sell at a higher multiple than IBM would be naïve unless you worship at Cramer's temple. If IBM sells for a multiple of 11, Intel should sell for multiples of 8 or 9 maximum.
4. As to the dividend yield, that certainly provides some cushion if you believe the deflation era will go on indefinitely. And last,
5. Management uncertainty presents yet another negative. Stacy, IMO, will not be able to move the company to the promised land.
you are seriously wrong:
1. IBM sold their PC segment to Lenovo and now they are mostly dependent on the Gov. spending. ouch. Buffet might start folding his IBM investment as we speak.
2. enlightened us why Stacy will not be a great CEO ? or you just pulled this one out of your hat as you did with the other bunnies. Intel or a similar sized company for that matter, already has in place a plan for future products, did I mentioned R&D already?
1. That was exactly the point I make about Apple on the site, as well as the others...It was thought to be cheap at all those levels you mention, so why aren't people buying? The charts still don't say to buy Apple as it has run along its down trendline but continues in that same direction. With the exception of one whipsaw on the excitement of a potential dividend anouncement, it continues to get rejected from that trendline.