Friday, July 24, 2020

INTC stock: Learn to be a smart investor

July 24, 2020

Introduction


It is so hard for me to find top intelligent investor. How to think and how to understand the market swings? I like to look into those comments from INTC investors. 

Analysis


I am looking for good thinkers:

Hold your Intel shares strong, one of the most solid and most profitable companies in the tech world. Do not let those inexperience millennials and Panic earning gamblers mislead you. Look at the After Hour Panic Sell when Q1 release on 4/23, where price dipped -7%, and how it recovered the following trading day, and understand the reasons behind the panic sells and the recover, the same pattern will likely to guide you the next day of trading.

Intel (Intc) is likely to open at $57 range and trading between $56 low to $59 low possibly $60.

If you look at the history of Intel after earnings, for example Q1'2020 earning released after hours on 4/23/20 at 2PM Pacific time, the after hours trading price dropped almost -7% after hours from closing price of $58.7 to $54.9 after hours. 

The next morning 4/24/2020, it opened at $56.2, -4% drop from prior day closing price, much Higher than the prior day after hours. Also during the middle of the trade hours on 4/24/2020, the stock price gradually recovered to $58 in mid session then fully recovered $58.9 at the end of the day. 

If you look into the reason of why after Q1'20 earning on 4/23 after hours stock would drop -7%, it was because Intel was delayed in 10 Nanometer scale production and 7 Nanometer was postponed, but the earnings and revenue growth was exceeding expectation, so on 4/24/2020, after panic gamblers had gone during after hours, it opened with a narrower price loss and recovered during the follwing day. Q2'20 after hours 7/23 to 7/24 look like the similar situation to me. 

After Hours Panic sell from those Earning Gamblers who do not know a damn of the company and financials. The Next Morning stock recovered and continued into nearly full recovery during the mid day next day, eventually close same level.


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