Intel Corp. (NASDAQ:INTC) - This One is a Tough Call ! ! !
Here again is one of the Dow 30 component Companies that is what I call "A Tough Call." It is very similar to Hewlett-Packard. Both have less than positive Valuations. The problem is that Technically it is becoming questionable. After you have years of experience in Forecasting it boils down to "Easy Calls" and Tough Calls."
I have learned that unless it is an "Easy Call" with near Excellent Fundamentals and Technicals - I just move on until I find one that is. When you have a large universe of nearly all the quality and conservative Companies, it is remarkable to most Investors when I say: There are always Excellent Companies that are "Easy Calls" at or around a Bullish or Bearish Inflection Point.
The reason (INTC) is currently a "Tough Call" and that price wise it is following earnings and therefore is not been a strong Dow component Company performer. The Pull-Back of 2012 is ominous. Just how much higher can it go? Not Much!
I am looking for a "Probability for Profit" of at least 20% or more when I Recommend a security. My Fundamentals for (INTC) are not supportive of this objective.
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Intel Corp. -- (INTC)
Fundamentals: (Old-Fashioned Valuations Must be - in Place before Taking Positions). The projected Earnings Growth of (INTC) is FLAT with a projected Bounce and then back DOWN again. This is not sufficient for strong price appreciation of any security. The current Price of (INTC) has NOT kept up with many other Dow 30 Companies that are currently and remain lofty.
Technicals: The Indicators are all pointing to being FLAT to DOWN. Buying is definitely not prudent at this price. I do expect (INTC) to become an "Easy Call" in the future and may well add it to my Candidates for Shorting (C4Ss) List.
I can help you with this if you ask.
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Opinion: Hold, if you own Intel Corp. - be prepared to take Profits in the coming weeks. This company is on my Daily Watch / Bearish "Warnings"List and should be on yours too, if you own it.
Forecast: The is nothing to suggest that it Coming Down in the Short (one - three months) to Intermediate (three - nine months)-Term. Hold for now? And seek Guidance from a professional. Most "professionals" will advise holding or even buying. Do they EVER recommend selling or offer a Bearish "Warning" such as the above?
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