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June 19, 2006

Inteller money in the bank, Mon., 6/19/2006 8:57 AM

On June 4 and 6th, I told readers I was starting to accumulate Intel (NDQ: INTC), which I see as money in the bank so I refer to the Company as Inteller. Today the UBS Investment Research group agreed with me. Download UBS June 19 Report on INTC. The rating was increased from Neutral to BUY.

June 4 (Week #22-06): But that Inteller (INTC) held some ground at $18.23. It's in the Accumulation Zone, but purchases should be minimal (you learn to scale in) because further weakness in the broad market could pull it down some more.

This is a good time to write puts " especially on weak days " so that you can either subsequently earn that option premium or have the stock (you want anyway) put to you at lower prices. This is what I mean by overwriting, since INTC is a core holding in the stock of a company that over a 10-year period will be a winner.


June 6 3:45pm: Some stocks go into a Distribution and Accumulation Zone before the majority of others. Intel (INTC) is one. As long-time readers know, and the archives show, I no longer wanted INTC in my portfolio above 25, even though the company stayed in the Cara 100, and now I'd like it back under 18. So I got out early and am getting back in early " compared to the cycles of the majority of stocks.

Have I made the right decision? With the option overwriting and the drop in market price, it is easy to see how INTC was just another decision in the long journey of capital markets trading that helps me beat 25 pct annual total returns (gains and dividends and premium income).



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Within four trading sessions, you all had an opportunity to buy INTC down as low as $16.75. And with my put writing, I was able to put INTC into the bank at just under $17. Thank you Wall Street for giving me my price.

And thank you Wall Street for starting to reverse your sentiment on this Cara 100 company.

Thank you, thank you, thank you.

Readers, are you starting to understand how the markets really work? Don't you wish someone had taught you this stuff in school?

GICS 45 Intel Corp. (INTC) (INTC) Financials Dow 30 Cara 100 UBS Research


Posted by Posted by Bill Cara on June 19, 2006 08:57:52 AM | Category: 45 Info Technology , Cara Global 100 Best Companies

Discourse

Readers, are you starting to understand how the markets really work?

Yes

Don't you wish someone had taught you this stuff in school?

Yes

Just cuz I have not said it for a while...Thanks Bill.

Posted by: Steven [TypeKey Profile Page] at June 19, 2006 1:05 PM [link]

You can hear a pin drop in here, lol. Well, looks like the Dow is going to fall someday quite hard. As for gold, that dollar isnt as ugly yet. We shall see. Good luck all, and Bill, thanks for continued updates on the markets and opportunities. I wish I could short banks as a group somehow, soon.

Posted by: Jason22 [TypeKey Profile Page] at June 19, 2006 3:10 PM [link]

The silence you hear(sic)are all the traders holding their breathes, monitoring their trading stations, waiting to pull the trigger, the first sign of a Market meltdown. Today, I executed my first trade of a Cara 100 company. Put INTC into play via a small probing trade due to market uncertainty. Market momentum (Neutral) has been quite boring of late, so during this down time I plan to put Bill's version of the Accumulation/Distribution
theory to the test. I don't use it in my trading, but it may prove interesting depending on the outcome.

Posted by: oratier [TypeKey Profile Page] at June 19, 2006 4:34 PM [link]