For the last three consecutive quarters, this company has seen its profits trend higher. The most recent quarter saw a 17.4% year-over-year growth in net income after seeing just a 2.3% profit growth in the second quarter and a 29.4% jump in the first quarter.
The current short interest as a percentage of the float for Intel stands at 2.3%. That means that out of the 5.09 billion shares in the tradable float, 117.48 million shares are sold short by the bears. This is far from a large short interest, but with over 110 million shares sold short, it's more than enough to lead to a decent pop in the stock if the bulls hear what they're looking for.
From a technical standpoint, INTC is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong since it bottomed in September at $18.99 a share. During that uptrend, this stock has consistently been making higher lows and some higher highs. Now INTC is setting up to trigger a big breakout post-earnings.
If you're bullish on INTC, I would wait until after they release their results and buy the stock if it breaks out above $25.92 high volume. Look for volume that's tracking in close to or above its three-month average volume of 56,196,300 shares. If we get that action, I would look for INTC to spike higher by 10% to 15%.I would get short or avoid INTC if after their report this stock fails to breakout and drops back below its 50-day moving average of $24.42 on high volume. Target a drop back towards $23.05 or the 200-day moving average of $22.31 if the bears hit this stock hard post-earnings. To see more potential earnings short-queeze plays like Insteel Industries (IIIN), Zoll Medical (ZOLL) and Interactive Brokers Group (IBKR), check out the Earnings Short Squeeze Plays portfolio on Stockpickr.
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