SG Talk

Intel is a sick company. It has to separate manufacturing from development


https://www.calcalistech.com/ctechnews/a...jlr1111v6a

It's easy to kick a company when it is down.

Suppose the story line is like this.

1. From 2000-2021 Imtel under invested and rested on its laurels until competitors caught up snd over take them.

2. In 2022 they plan capital investments to catch up with competitors. Problem with semi con foundries is that it takes mult yrs to build and if you start in 2022 you only see the pay back in 2026. And it is very expensive drain your cash position and increases your debt. But no choice because if you do nothing the window of opportunity closes and you are forever gone. Also, US govt is giving subsidy to bring semi con back home.

3. While you are building the next generation capabilities, competitors continue to eat your lunch you market share shrinks and cashflow worsens ...your investments have no payback.

4. Investors lose patience start dumping the stocks.

Long term Intel many indeed by worthless as it never catch up but that has not happened yet.
Yes if one is playing for shorter term this stock won't perform because investors are running away and will continue to run away.

But that is different from the company having no hope for.recovery.

(16-09-2024, 09:40 AM)sgbuffett Wrote: [ -> ]It's easy to kick a company when it is down.

Suppose the story line is like this.

1. From 2000-2021 Imtel under invested and rested on its laurels until competitors caught up snd over take them.

2. In 2022 they plan capital investments to catch up with competitors. Problem with semi con foundries is that it takes mult yrs to build and if you start in 2022 you only see the pay back in 2026. And it is very expensive drain your cash position and increases your debt. But no choice because if you do nothing the window of opportunity closes and you are forever gone. Also, US govt is giving subsidy to bring semi con back home.

3. While you are building the next generation capabilities, competitors continue to eat your lunch you market share shrinks and cashflow worsens ...your investments have no payback.

4. Investors lose patience start dumping the stocks.

Long term Intel many indeed by worthless as it never catch up but that has not happened yet.
Yes if one is playing for shorter term this stock won't perform because investors are running away and will continue to run away.

But that is different from the company having no hope for.recovery.

Hope you invest in Intel stock. Walk the talk