Intel (INTC) (25% higher revenue vs. Lawsuits)

[JeffreyO]

INTC is facing a smorgashborg of lawsuits including a freshly dispenced SO from the European Trade comission. They're similiar to other lawsuits which were either properly defended against or never went to court.

I'm new to investing, I don't know much but INTC felt like a good short term investment for the 3rd quarter with 25% higher revenue and a strong outlook for the 3rd quarter. They've been in a constant climb since the profitability report was released and today gained 5.2% on their overall value.

However, shortly after closing the ETC announced they would file anti-trust charges against INTC and the stock took a sharp -2.5% drop. In the following hours it has since leveled and is sitting patiently around -2.0% giving hte day an overall positive 3.2%.

What do you think about the future of INTC? With huge profitability and a very bright outlook for the 3rd quarter do you think their stock will continue on its upward trend or will the new SO be enough to hold their stock at bay?

(PS, I am very new to investing so please feel free to correct any terms I used or even my thought on how this might effect the overall value of INTC)

[aquaswim47]

Chip makers should do well. You may want to take a look at TSM. It's based in Taiwan.

[StockJunkie]

Intel just broke out of a descending channel which could technically be a good long entry point. In this market though I am hesitant on any new long position considering the added volatility. Key support $19.50 - $20.

[JeffreyO]

Originally Posted by StockJunkie

Intel just broke out of a descending channel which could technically be a good long entry point. In this market though I am hesitant on any new long position considering the added volatility. Key support $19.50 - $20.

I agree. I bought in around $20.5 per share and today it's been bouncing around 22.00 all day. I feel that INTC has much more room for growth based on a strong 3rd quarter but is being hurt by AMD's weak showing of microprocessor market value. Also the mixed reactions from various tech stocks help to keep the NASDAQ under watch. I'm going to hold onto my current shares for now but not buy any more in. I believe that in the next few months INTC could easily extend up to $25.00 a share but only if everything goes right.

There's also always the European Trade Comission lawsuit to deal with...


(Edit)
After careful review of the trades for the day it seems that the professional traders in the market have the same idea as I.

INTC Stock Charts - Intel Corporation Stock Market Charts - Free Stock Charts

The amount of volume that's been traded today on INTC has been extremely low for such a large company with such good recent news. I suppose they're conerned about INTC being pulled down so they don't want to buy in but also see growth in the future and don't want to sell out. It should be interesting to see how it plays out.