Could Inventory Problems Kill Intel (INTC) and Texas Instruments' (TXN) Recent Rally?

Last post 11-20-2009 3:42 PM by JAZMINE73. 2 replies.
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  • 11-19-2009 1:55 PM

    Could Inventory Problems Kill Intel (INTC) and Texas Instruments' (TXN) Recent Rally?

    Intel (NasdaqNM: INTC) opened at $19.40. So far today, the stock has hit a low of $19.18 and a high of $19.40. INTC is now trading at $19.19, down $.93 (-4.62%). Over the last 52 weeks the stock has ranged from a low of $12.05 to a high of $21.27. INTC shares are falling with other semiconductor stocks this morning after analysts at BofA/Merrill downgraded a number of stocks in the sector, saying in a note to investors that inventory levels are close to eclipsing demand. The analysts added, "we think the longer this persists the greater the risk of a correction in the supply chain." INTC was reduced to Neutral from Buy. Technical indicators for the stock are bullish and S&P gives INTC a positive 4 STARS (out of 5) buy ranking. If you are looking for a hedged play on INTC the stock seems like it could be a candidate for a January out-of-the-money bear-call credit spread above the 21 range.

  • 11-20-2009 7:27 AM In reply to

    Re: Could Inventory Problems Kill Intel (INTC) and Texas Instruments' (TXN) Recent Rally?

    well, if in the coming quarters, consumers do not up their demand, I think INTC and TXN can revisit their lows

    after all, how many people can you cut and still have a company?

  • 11-20-2009 3:42 PM In reply to

    Re: Could Inventory Problems Kill Intel (INTC) and Texas Instruments' (TXN) Recent Rally?

     Didnt intel lose a lawsuit to amd?

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