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HEXUS.sharewatch - 20th April 2006

by Steve Kerrison on 20 April 2006, 09:46

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Sharewatch

We get stuck into the second week of the new HEXUS.sharewatch feature (in which I get a logo... nice!). Have the big tech companies performed well on the stock market?

Company Listing Share Price ($US) 7-day change
AMD AMD 31.54 -3.88
Apple AAPL 65.65 -2.34
ATI Technologies ATYT 16.51 -0.02
Dell DELL 28.59 -1.06
Google GOOG 410.50 1.55
IBM IBM 81.86 1.11
Intel INTC 19.55 -0.35
Microsoft MSFT 27.05 -0.15
NVIDIA NVDA 29.16 -1.29

AMD issued its First Quarter Results this week, with good results. Nonetheless the day following the news, shares opened ~$2 lower. In the few days trading thanks to the Easter weekend, shares in AMD are slowly picking up again. Despite AMD eating away at Intel's profits, there hasn't been much change in the Intel share camp, although Intel yesterday posted its biggest drop in quarterly profits in four years, so today could see some shares shift.

Closely tied to Intel at the moment are Apple, a late addition to our .sharewatch. Apple, have had a good quarter, and that is believed to have eased the blow at Intel, seeing as the latest Macs now feature Intel chips (no AMD competition there... yet.)

Google's shares have upped slighly following an announcement of upgraded search hardware and more plans for enterprise searching.

The only other upward-mover is IBM. NVIDIA haven't made any ground despite showing off its new 7900 GeForce Go, Microsoft is not doing much despite a certain Communist leader paying their Chairman a visit, and Dell's rivals are gaining on it, so they've lost out this week.

HEXUS Forums :: 3 Comments

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Posted by Rohan - Thu 20 Apr 2006 13:21
Interesting stuff.

I've just started looking at shares myself, so this sharewatch feature will be an interesting read. Tech shares seem expensive at the moment, compared to say a year ago. Nvidia in particular would have been a good investment 12 months ago, it looks like it has since tripled in price!

Intel and AMD both have new architecture coming soon, so their share price might do better in the coming months. I'm not sure which side to bet on.

Microsoft looks interesting though. It's been quite steady over the last year or so and looks relatively cheap. Could become interesting once Vista hits?
Posted by TheAnimus - Thu 20 Apr 2006 13:37
my money is on intel, if conroe pulls it off. But its too much like gambling for me to cough it up.
Posted by merlin2001 - Thu 20 Apr 2006 23:06
I currently think a long Intel/ short AMD pair trade looks to be a good bet for over the next quarter or two. Conroe should help to pull intel's numbers around and AM2 doesn't offer much more than a steady as she goes from AMD (Intel is also more diversified and the increasing NB of laptop over desktop sales should also help).

for those who are not sure what a pair trade is - it is a common strategy that's esp. popular in falling markets and tends to be used mainly by hedge funds. The basic logic is you buy the shares of one company and sell (short) the other. typically, the shares shorted will operate in the same sector (or at least have highly correlated returns) Your profit is based on the relative performance of the shares against each other. The overall direction of the market doesn't impact on your pnl, hence it's popularity in weak markets when profits are more difficult to find.

P.S - standard disclosures apply. this is not a solicitation to buy or sell any securities. views expressed are authors own and do not represent view of firm he is employed by. share prices can move up or down and no guarantee of return is made or implied (etc. etc. I know the last bit sounds all pedantic, but there has been a specific court case recently that make me feel it prob. necessary to put it in…)