Intel (INTC)

There has been a lot of consolidation in this sector and they have been the go-to name for some time. There is a risk that they may acquire someone that the market won’t like.

This powers a lot of computers, and the data for PCs has not been good as they have been going down. Every year there are less and less PCs being shipped. What has been powering them lately is their data centre business and the server business. People are concerned that this is also slowing down and peaking now. The multiple has crept up for a company that has one side of the business coming down and the other side growing. If you believe that video is going to grow exponentially, versus broadcast TV, this company should still do well on their data centre side. He would rather play the video growth with companies that are much more focused on streaming, such as Mellonix Technologies (MLNX-Q).

Struggling with competitive threats from ARM Holdings (ARMH-Q). He would rather see you buy this at around $30. If you want to look at another good consistent dividend payer, he would look at McDonald’s (MCD-N).

Advanced Micro Devices (AMD-Q) or Intel (INTC-Q)? Neither of these would be his pick for a US stock. This one is probably the better of the 2. AMD is a little more challenged because it is such a small player in that market. This one is not bad, but in the last couple of years have made a big investment into mobile and has had a struggle. Cisco (CSCO-Q) looks better. It is a CapX company, and there has been a CapX starvation globally. It is positioned at about 12.5X earnings and the earnings growth over the next 2-3 years looks to be about 13%-15%.

(Market call minute.) He likes semiconductors, but would prefer Avago (AVGO-Q) or Nvidia (NVDA-Q). This one is going to have some difficulty because of their desktop exposure.

(Market Call Minute.) There is a decline in desktop PC demand, and they have not successfully navigated over to the mobile chip set. Until he sees the mobile work or a slowing secular decline in desktop, this still has a bit of a headwind.

He uses departure analysis when the 50 crosses the 200. When that happens you are too far. The trend is clearly upward. Technology should do well this year so stick with it.

Chart shows a big drop from the beginning of the year, but the stock has bounced off support, which is really positive. He is looking for this to go back up to $35. If this drops below $27, that is maybe where you should be exiting your position.

(Top Pick Jan 8/15, Down 16.51%) Model price suggests a 50% upside. You are being paid to wait.

The timing is very good. Does well from October to mid-Feb. It is doing it again. This is a period of season strength. There is a very good chance it will break into a new high. Continue to hold it.

Historically, semiconductor stocks have done very well from mid-Oct until around the 2^nd week of Feb. However, this one has not been doing what it is normally expected to do. In the last 2-3 weeks, it has been going down when most of the technology sector has been going up. It has been underperforming the market. He likes this sector and normally likes this company on a seasonal basis, but this year it is just not quite doing it.

He likes tech stocks. It broke a downtrend recently. He thinks it is going to get at least back to the old highs. He will review it in the spring as it is a trade.

(Top Pick Nov 25/14, Down 4.07%) Chips are in everything. The September lows are much higher lows than in August. NVDA-N is his preference now in the semiconductor space.

It is a fine company with some fire power and there is a potential they could reinvent themselves, but now they are fighting the headwind of being a chip supplier to PCs in a smartphone age. He would go to AAPL-Q, GOOGL-Q, and FB-Q.

He likes this.