Analytical Review of the Stocks of Intel Corporation
Intel Corporation, #INTC [NASD]
Technologies, Semi-conductors, USA
Financial performance of the company:
Index – DJIA, S&P 500;
Beta – 1.00;
Capitalization – 135.81 В;
Return on asset - 12.00%;
Income - 11.42 B;
Average volume – 25.57 М;
P/E - 12.30;
ATR – 0.58.
Analytical review:
- The company ranks the 9th on capitalization in the sector of “Technology” among the issuers traded in the American stock market.
- On 19 March the company presented report for Q1 o the fiscal year 2016, which showed that Intel Corporation’s stocks have grown by 1.5%.
- According to the press-release, company’s revenue rose by 7.9% up to 13.80 billion USD against market expectations of 14.00 billion USD. Net profit of the company was 0.54 USD per share against 0.45 USD per share a year ago. The forecast was 0.49 USD.
- At the press-conference the company presented a new business restructuring plan. According to the company’s plan, restructuring will be completed by Q2 of the fiscal year 2017. In the result of restructuring the company will reduce costs for about 1.4 billion USD per year. The restructuring plan involves reduction of personnel by 12000 people, which is about 11% of the company’s workforce.
- This year the company intends to increase production of microarray and significantly reduce production of PC. In the first quarter, sales in the computer industry has decreased by 11.5%.
Summary:
- Positive last report has increased investors’ confidence in the company. Despite pressure from the strong USD the company’s revenue and net profit have increased above markets’ expectations.
- Intel Corporation has strong growth potential. Successful implementation of the restructuring plan can increase the price of the company.
- Therefore, in the near future the price of company’s stocks is likely to increase.
Trading tips for CFD of Intel Corporation
Long-term trading: The issuer consolidates at support level of 31.40 USD. At the moment Intel is traded near the local resistance level of 32.20 USD. If the price breaks down and tests this level and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 32.70 USD, 34.00 USD and 35.00 USD with the use of trailing stop.
Short-term trading: on the chart with the timeframe 15M the issuer is traded between the local support and resistance levels of 31.85 - 32.15 USD. We recommend to enter the market after breaking out and testing of these levels. The positions can be opened near the signal line and the nearest support/resistance level. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.
