January 14, 2011
Shares of Intel Corp (NASDAQ: INTC) have pulled back from their $22 highs after a three month advance. Thursday’s January 13 aftermarket earning report could set up a low risk trade.
Intel began moving higher on Tuesday, January 11. The reason became obvious after the earnings report was released. Intel reported 48% jump in fourth-quarter profit, as the chip giant saw strong demand for server processors.
The company reported a fourth-quarter net income of $3.39 billion, or 59 cents a share, compared with a profit of $2.28 billion, or 40 cents a share, for the year-earlier period. Revenue was $11.46 billion, up from $10.57 billion.
Analysts had expected the Santa Clara, Calif.-based semiconductor company to report earnings of 53 cents a share, on revenue of $11.38 billion
The potential for a breakout on Friday is very real. A sell stop below Tuesday’s low at $20.74 would provide a low risk entry, assuming the share price is not bid overly higher after-hours.
The Fibtimer.com (http://www.fibtimer.com) Stock Timing Strategy does not currently hold a position in Intel.