I have been kicking around Idea of documenting my learning and analysis of stocks for long time, But have never got around to it. I can attribute the delay to my laziness and lack of organization. It is the same friend who told me last week that if I start writing my blog, I will become organized. Here I am experimenting.
Coming back to the topic, what do i think of Intel stock. On Wednesday, after market close Intel announced 39% decrease in profit and lowered guidance for 2007. Stock plunged nearly 5% on open next day. I think this creates a buying opportunity in the stock. I believe that over next twelve month stock will appreciate 20-25%.
I believe that Core duo product is solid and Intel also has now match for Opteron chip with 64-bit quad core Xeon. First time they are competing in Enterprise server market with a commendable product.
I also believe that management restructuring, downsizing and streamlining the focus will help intel come up with better product in short time in market. Adding their advantage in process technology over AMD, intel seems to be poised to hold the line fast for next couple of years.
I believe that risk in the trade is minimal and any retracement in price will be additional buying opportunity.
On Apple(AAPL), I think the stock has run quite a bit from last July. It is due for correction before it can move up. As seen in chart below AAPL either retrace to 50 day MA or to lower borlinger before bounce up on good volume. I believe although AAPL has solid technology and sleek products, long term outlook stays good. In short term i will wait for correction to play itself out.
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