Intel's Problem
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*****Intel's Problem
*****Strong Like Bull
*****Silver Eagles
 
Fellow Investor,

Congratulations to the Green Bay Packers and their Super Bowl victory last night. It was an entertaining game. Though I have to say, the halftime show featuring the Black Eyed Peas wasn't my cup of tea. But I guess the cool kids liked it. And speaking of kids, I was really pleased with the 6:30 p.m. ET kick off time. That will probably help office attendance this morning.

It seems to me that professional sports does itself a disservice with late start times, especially for playoff and championship games. Most kids can't stay up late enough to see the conclusion, and these kids are the next generation of fans and players.

*****Speaking of Black Eyed Peas, one of the singers, Will I Am (I think he was the guy with the plastic thing on his head), has been hired as a creative director for Intel (Nasdaq:INTC). I'm not joking.

Intel has clearly been left behind in the handheld/potable wireless device boom. PC chips are pretty much commoditized at this point. The growth is in chips for phones and tablets. Companies like Qualcomm (Nasdaq:QCOM) and Nvidia (Nasdaq:NVDA) are leading.

I have no doubt that Intel will make an acquisition to get more exposure to the wireless device space, but hiring a pop star to help drive new products is a clear indication that Intel is feeling the heat.

Investors are clearly showing that they recognize the position Intel is in. The trailing P/E is 10 and the forward number is 9. That's cheap, and the explanation is that Intel is missing a big growth opportunity. Though truth be told, Intel has put up very good numbers the last few quarters.

*****Bloomberg reports that S&P 500 companies are beating revenue estimates by the widest margin in four years. Clearly, analysts are being conservative in the wake of the financial crisis. But don't ignore the fact that the consumer has recovered faster than expected, and companies (and stocks) are benefitting.

Strategist Greg Woodard, from $36 billion Manning & Napier in New York told Bloomberg: "Sales tends to be highly correlated to economic activity..."

If that's not stating the obvious, I don't know what is.

*****For some real insight, let's turn to Jason Cimpl of TradeMaster Daily Stock Alerts. The following is from this morning's advisory to subscribers:

The bullishness from the market last week erased any advantage the bears may have had to take the market lower.

As I mentioned before, the bears let another chance to drag the market lower slide away. While the market could trade lower in the short term, nothing in the charts indicates we should trade with anything but a bullish bias.

We know the indices are overbought, and due for correction, but the bears are weak and the bulls are strong. Until one of those two trends changes, we must favor a bullish outcome for the market, despite our every rational thought leaning otherwise.

The market is finicky about "when" and "what" kind of information it reacts to. Good news or bad news, the market continues to chug higher. Economic data is extremely light this week and most big companies have reported financial results. With the light news, and slightly bullish bias entering the week, it appears impractical for the U.S. indices to top now.

As always, Jason does a great job of reading the stock market's signs and positioning his readers for profits.

What he's basically telling us is that while many of us feel that we're possibly long overdue for some sort of correction, the data is just not supporting it. He's not being a market cheerleader here, just laying out the facts and recommending having a bullish stance until we see otherwise.

TradeMaster Daily Stock Alerts members took 55% and 17% gains last week, and they've closed 11 of their last 14 trades with profits.

And for the record, his three losing trades were -1%, -1% and -5%. That's because Jason uses stop losses to protect his readers' money when they're in a position. Are you using stop losses?

*****Merger Monday lived up to expectations again. AOL is buying out The Huffington Post and Danaher (NYSE:DHR) is taking out Beckman Coulter (NYSE:BEC) for $5.8 billion. Also, offshore oil rig operator Ensco (NYSE:ESV) says it will buy Pride International (NYSE:PDE) for $7.3 billion.

Corporations are loaded with cash and they're putting it to work in acquisition. This is an important source of bullishness for the market.

*****Finally, the Silver Eagles for new subscribers to the Small Cap Investor PRO  advisory service who responded to our silver stock promotion should be getting their coins in the mail in the next 2 weeks. These coins are beautiful and I'm sure you'll enjoy getting them in your possession.

We ordered some extras and once we've mailed out the ones we've committed to, we'll give you a chance to get your own, for free. Keep an eye on your inbox.

Until tomorrow

Ian Wyatt
Editor
Daily Profit

P.S. Jason just sent out his weekly trading video to subscribers on Saturday night. This video details the market trends for the upcoming week and the stocks and ETFs he's going to be putting out buy notices on. It's only Monday, so if you want to check out the new video, get in on the action, and test out his service you should sign up today. Click here for more...





Posted 02-07-2011 2:45 PM by Ian Wyatt