Berger: Intel Might Make A Good Short
Serge Berger is a weekly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.
Intel Corporation (NASDAQ: INTC) might make a good candidate for short sellers, according to The Steady Trader Head Trader and Investment Strategist Serge Berger.
Berger, whose Web site offers online training courses concerning the stock market, told Benzinga that the Santa Clara, California-based chipmaking giant "looks like a pretty decent short."
Berger added that "I know we've come to a point where the stock has sold off already."
Intel is down 13 percent in the past year and traded recently at $31.39, up $0.07.
Berger said he prefers Intel as a short candidate to Micron Technology, Inc. (NASDAQ: MU). Berger didn't provide reasons for his preference.
Berger likes Intel's "lines of resistance and support, including a complete head and shoulders pattern to lean against on the short side."
About 2.4 percent of Intel's public float was held as short interest as of May 29. That's down from more than 4 percent in November.
Analysts on average maintain an Overweight rating on Intel and a $34.63 target.
Intel recently agreed to pay $16.7 billion to acquire Altera Corporation (NASDAQ: ALTR). The deal is part of a wave of consolidation among chip companies aimed at holding down product development costs through economies of scale.
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