INTC

[Jack Haddad]

A close above the filled gap of 19.85 is ver bullish! Today, Intel executives reiterated the confidence they expressed on their most recent quarterly earnings call that inventories would return to more normal levels in the second half of the year. They also expressed optimism that the company will regain lost market share in key areas. Otellini (CEO) unveiled a timeline for shipments of three new processors, including its new Woodcrest server processor. Woodcrest will be shipping in June, while its Conroe processor for desktops will ship in July. Its new Merom processor for laptops will ship in August. He added that the company will refresh two of its platforms, the Viiv brand for digital entertainment PCs and the Centrino chip, targeted to laptops for wireless access. He expects the company's Viiv platform to generate $1 billion in revenues in its first 12 months. He made the same prediction for vPro-- which is expected to launch in the third quarter. Intel unveiled vPro on Monday.

[Jack Haddad]

A close about 20 today will serve as a bullish psychological barrier and will invite more buying interest by retail investors. A close above 20.05 (daily support thus far) will act as an important pivotal landmark.

[Jack Haddad]

Folks, in examining the recorded conference with analysts which took in New York on 4/28/06, Intel is making a major move. It's the most significant change since the 1980s-- When the giant chip maker abandoned its main memory chip business to focus on microprocessor chips. The company is engaged in an extensive self-evaluation for efficiency and productivity in the next 90 days...Where they're conducting a deep analysis operation by operation, Said CEO Paul Otellini. Referring to a famous saying by former Intel CEO Andy Grove, "It's an inflection point".

Intel's broad revamp aims for savings. It's a methodical and strategic exercise, rather than an across-the-board cut. For example, the company may look at exiting their high-end microprocessors, dubbed Itanium, on which intel has spent well over 1 billion to develop since 1994. It might also unload its flash memory and communications businesses-- which are all losing money.

Instead, Intel is increasing its long-term investment design in microprocessors. The company is accelerating the timetable for introducing a major design change to its chips to every two years; in the past, Intel has taken 5 to 6 years to introduce a major change to its chip architecture. It's last major design, Pantium 4, was introduced in 2000. Design changes are more than just simple speed upgrades; rather, they involve a complete redesign of how a chip operates.

The company will employ several engineering teams that work on different generations of chips in parallel. Currently, Intel has more than 1000 people working on designs for a new kind of product, the Ultra Mobile PC. These are small portable computers, such as Samsung's upcoming Q1, that weigh less than 2 pounds and run the full windows operating system. This new development approach explains why Intel has increased its work-force so dramatically to 103, 700 employees, compared with 87, 100 a year earlier.

Ladies and gentlemen, this strategic move in development is likely to put heavy pressure on rival AMD, which has one-tenth the number of employees that Intel has. A colleague from Moors & Cabot, analyst Hans Mosesmann, attended the conference last Friday; he said that he was rather impressed with the fire in Otellini's speech. I, personally, concur too. I have in the past interviewed fab supervisors, and senior engineer managers at Santa Clara headquarters who told me that Intel executes best when it's under pressure or when it's under a level of danger.

[Jack Haddad]

Intel is at an inflection point here. It desperately needs a close above 19.50 to prevent the recent low of 19.15 --which was tested earlier this week. Should we close below that pivatol 19.50 mark, the stock will breach 19.15 and test lower lows- -18.80

The above technicals by no means indicate that Intel has weak fundamentals! Although the two are complete different schools of thought, they rely and complement one another; that said, "never ever trade anything that youre not willing to hold".

[Stocktrading101]

Intel got upgraded today and is currently up about 3.54% as of 10:30 AM on the dot to 20.17. This may just be the push it needed to break $20 and stay above what became such a barrier of resistance! Go Intel

[Jack Haddad]

Blain, although I'm happy of today's push, I try not to endulge myself in any upgrades...Expecially those that do not provide any content to their upgrades or downgrades. Truthfully, we need to go back and consolidate in the 1970s arena, otherwise you;'ll have a gap to worry about. Gaps always fill!

[Jack Haddad]

Intel was lifted by two analysts' upgrades. Analysts at American Technology Research raised the world's largest chipmaker to buy from hold, noting that Intel may sell or spin off its flash memory unit in an initial public offering. Caris & Co. boosted the stock to above average from average. Be advise that the reasoning behind those upgrades is strictly speculation. Therefore, it's best to base upgrades on fundamental and technical analysis.

[Stocktrading101]

Under $20 again today, but $20 can no longer be claimed as big resistance, this should continue to be a fun watcher over the next couple weeks. I believe some of the sell off today is coming as Dell had a bad 1Q.