Last month, we were talking about Intel (INTC) as a bearish stock heading to $10, but after last week things may have changed.
According to Bloomberg, Intel’s management has been approached by two possible suitors as Intel is starting to look like a good acquisition target.
It started with reports that Intel’s Board met early last week to discuss a takeover offer reportedly made by Qualcomm (QCOM).
Then, over the weekend, news that Apollo Global Management Inc (APO) has offered to make an investment of up to $5 billion into the semiconductor company as an equity partner.
Intel shares rose 11% last week and are already trading 4% higher in pre-market trading on Monday.
The stock has been through a rough year, losing more than 56% of its value as the company continues to attempt to pivot into the AI chip space.
Shares traded to their lows below $20 and near their tangible value weeks ago after the company missed its earnings targets and lowered its outlook for 2025. Still, funds from the CHIPs act and a management team that is dedicated to bringing chip manufacturing to the United States have bolstered shares of late.
Think of this as a “Value” trade in the growth stock space for now as Intel shares appear to be gaining traction with a target of $30.
Fast Food company Chipotle (CMG) shares appear to have moved into the Scott Boatwright era without missing a beat.
Boatwright, the company’s new CEO, took the help on August 31 after former CEO Brian Nicole left to take the same position at Starbucks.
Chipotle shares dropped more than 25% in July and August as investors reacted to the news and the company’s latest earnings report. Shares hit intraday lows below $50, but ultimately found support at that psychologically significant price level
Last week, the stock crossed above its 20-, 50-, and 200-day moving averages in a powerful technical play.
In addition, the important 50-day moving average is preparing to shift into a bullish trend while completing a “Golden Cross” technical pattern.
That technical combination would put Chipotle shares in a position to rally 67% of the time while that 50-day remains in its bullish trend.
Watch for shares to break above $60 over the near-term as investors look to get into this positive trend ahead of the October 29 earnings report.
Gannett (GCI) shares got a surprise last week as two Wall Street analysts upgraded their outlook and price targets on the media stock.
This is a trend that I mentioned to readers months ago as we were heading into the election marketing cycle. Companies like Gannet, Fox (FOXA) and the New York Times (NYT) benefit from the hoards of advertising money and daily readership sourced from the elections.
Shares of Gannett recently saw a quick 28% decline from their August highs above $5.50.
Last week’s upgrades put the stock within striking distance of that price as they trend their way to an $8 target price.
Jerome Powell and the Fed put the iShares 20+ Year Long-Term Bond ETF (TLT) back on the map as an attractive long-term dividend investment last week.
The iShares 20+ Year Long-Term Bond ETF had been in a long-term bear market trend for the last two years as interest rates continued to press higher. That move “devalued” bonds, driving the TLT to multiyear lows below $87.
Last week’s shift in interest rate policy put the TLT shares above $100 for the first time since May of 2023. The move shifted the TLT into a new long-term bull market trend.
With a yield of 3.78% and lower than average volatility, the iShares 20+ Year Long-Term Bond ETF is now an attractive choice for income investors with a target of $120.
Walgreen Boots Alliance (WAG) shares continue their decline below $10 as signs that discount shoppers are pulling back even further on their spending emerge.
Last week data from Ollies and Family Dollar showed that discount shoppers are tightening their purse strings as the economy continues to pressure budgets.
In addition, Walgreens Boots Alliance is also showing signs that continued competition with larger pharmacy systems like Amazon, Kroger and Walmart are digging into what used to be a strong foundation business for WBA.
Walgreen Boots Alliance is set to announce their earnings on October 15. The company lowered fiscal year 2024 guidance for both revenue and earnings per share in June.
Shares made the ominous move below $10 in Late August and haven’t looked back as the stock closed at $8.71 on Friday.
Investors should expect that the stock will trade below $8 over the next two weeks with a target of $5 over the next 4-6 weeks.
