There is a good question asked by Ein55 investment forum member (click here to join forum for free) on comparison of these 4 US stocks from 2 sectors:
– Semiconductor / Technology: Intel (Nasdaq: INTC) vs Micron (Nasdaq: MU)
– Telco: Verizon (NYSE: VZ) vs AT&T (NYSE: T)
Here are my replies after application of “Giant Detector” tool just now, only personal views for educational purpose:
1) These 4 stocks generally are giant stocks, choice of stock or sector depends on investor personality which determines the strategy to apply, eg. short term trading or long term investing, whether buy low sell high (for cyclic stocks), or buy low & hold long term (growth stocks) or shorting (when trend is reversed in a bearish market). Micron may not for long term investing due to very cyclic nature.
2) These 4 stocks belong to the same country (Level 3), USA, therefore trends are mostly following US S&P500 / Nasdaq, generally bullish.
3) These 2 pairs of stocks also from the same sector (Level 2). Telco: Verizon (NYSE: VZ) vs AT&T (NYSE: T). Semicon / Tech: Intel (Nasdaq: INTC) vs Micron (Nasdaq: MU). Both sectors are also following Level 3 in US with uptrend prices.
However, these 2 sectors are different:
– Telco is a “growing” industry in US, suitable to buy low sell high, or buy low & hold.
– Semicon / Technology is a “cyclic” industry in US, more suitable to buy low sell high (especially for Micron)
4) The key differences are with individual stocks (Level 1):
– Micron is more cyclic than Intel (choice depends on personality on risk tolerances), both have strong fundamental but tech / semicon is susceptible to economic cycle. We may have version 2.0 of Dot Com bubble (Ver 1.0 was in Year 2000), which technology stocks usually would go to high optimism during bullish economy, eg now, both stocks are over 70% Optimism.
– Verizon has stronger growth than AT&T (difference is not very large), both have strong fundamental.
In the last Ein55 Charity Course, we have reviewed a strong Hong Kong Telco dividend giant stock, could be better than both Verizon and AT&T for long term investing. US stocks are more suitable for shorter term investing or trading due to high optimism level in the current US stock market. Please do your own analysis and make decision aligned with own personality.
For students waiting to attend 6-day Ein55 classes in Feb and June 2020, you will have chance to do similar homework to study the best giant stocks in each sector or country after learning Giant Detector on Day3 of the 6-day course.
For public readers (non-graduate) who are new to stock investing or Ein55 investing styles, you may sign up free 4 hours stock investment course by Dr Tee to learn LO-FTP strategies: Levels 1-4, Optimism, Fundamental, Technical, Personal Analysis. Register at: www.ein55.com
