Intel (INTC, $19.88, up $0.04) and Advanced Micro Devices (AMD, $6.51, up $1.19) have buried the hatchet after agreeing to end all outstanding legal disputes between the companies, including antitrust litigation and patent cross license disputes.
This was certainly a surprise and as you can see, investors think AMD benefited the most. And why wouldn’t they? Intel will also be reaching in its pocket to pay AMD $1.25 billion.
Intel was up over $20 earlier this morning but is pretty much flat while AMD is holding its 20% pop. Here is what the two companies had to say:
“While the relationship between the two companies has been difficult in the past, this agreement ends the legal disputes and enables the companies to focus all of our efforts on product innovation and development.”
Under terms of the agreement, AMD and Intel basically have a new 5-year cross license agreement deal and both parties will give up any claims of breach from the previous license agreement.
It would have been sweet to have gotten in the AMD November 5 calls (AMDKA, $1.50, up $1.09) YESTERDAY as they are up 265% today but don’t go chasing…
We were stopped out of our Wal-Mart (WMT, $53.57, up $0.60) trade this morning for a 17% profit but many of you wrote to say your returns were much better. Some of you made upwards of 50% which brings up a good point. We often get emails saying there is no way you can duplicate our portfolio results (which can be viewed anytime) but here is an example of where subscribers did make better returns.
It also happened with Priceline.com (PCLN, $199.77, up $2.97) as some of you made over 500%. So, see, it all depends on the market and what YOU feel comfortable with and what your exits and entries are.
Look, we are going to put you in a lot of good trades and everybody is going to have different results. Our goal is to make you money and you can never go broke by taking a profit. If you take profits you always have another trade and that is what we do. We trade and we don’t fall in love with a position.
The Dow is currently down 47 points to 10,243 as we head to press but we see some more trades on the horizon. Current subscribers, please check the Members Area for the update on Wal-Mart.