2024-06-17 17:07:10 ET
Summary
- I correctly had issued a 'Sell' view for Intel last time, but prematurely changed this, leading to a foregone chance to capture 40.05% of alpha.
- Now I am reinstating my bearish stance on the stock as I notice that Intel continues to see falling revenues due to loss of share to competition.
- The company's margins are also likely to be depressed for the rest of FY24 and beyond as their catchup plans on Foundry Technology incurs high costs.
- I am skeptical of management's optimism and bullish commentary given their track record of disappointments on revenue guidance. Intel also seems overvalued given an unwarranted premium to its historical valuations.
- Even if one believes in the turnaround, I think the best time to invest is after significant investments are done and before much of the return is realized. Till then, I continue to follow the bearish trend vs. the S&P500.
Performance Assessment
I'm kicking myself when I review the performance of my prior stance on Intel Corporation ( INTC ). I had a 'Sell' view of the stock. However, I prematurely communicated a change to this view to a 'Neutral/Hold' based purely on the technicals:
Pinned Comment on Author's Last Article on Intel (Author's Last Article on Intel, Seeking Alpha)
Read the full article on Seeking Alpha
For further details see:
Intel Continues To Lose To Competition