Everybody is too pessimistic. Recovery has started.
https://seekingalpha.com/article/4550958-intel-q3-seems-to-have-found-bottom
Intel stock is trading at a PE ratio of 10. That is a very low multiple, even if you are talking about when the stock was $14 a share I don't think the PE was much lower then.
At this price, it 'should' be a buy... but, that assumes the company continues to make money, not turn it into 'concrete' as @1yio+1jtPWHLo said.
Pat has a long track record of huge spending. He isn't timid. Foundry model scares the he-l out of me as an investor. You could pour a lot of concrete before you know if it will ever work.
Bottoms can fall out. Are teens in the future? We'll see. If Pat keeps turning cash into concrete at this pace everything's possible.
As someone who joined with a lot of other people in '99, I saw the stock hit mid 70s and drop to around 14 if I recall correctly. Lots of people rode it all the way down, thinking it can't get any worse as it got worse. There are a lot of examples in big companies and tech where stock price declined by 80% before it slowly rebounded and I see no reason why Intel, with serious competition on all fronts, won't drop into the teens for stock price in the next year. I do quick sale on everything and save it in cash on etrade - waiting until there is blood in the streets and nobody wants anything to do with stocks and then I'll buy back in.
You can expect a dead cat bounce in the stock when layoffs are announced. Following the announcement, the steady decline usually resumes.
Intel product gross margin has gone from 62% in 2018 to 42% in latest quarter. Stock price has fallen 50%.
Owning this stock right now is a value trap. It's so cheap you don't want to sell... but the IDM 2.0 strategy is a cr-p shoot and a layoff won't change that much. Buy / Sell / Hold?
Great post! I agree! Intel has a great direction. It is exciting to see the company hitting on all fronts.
This is an HR post. Found a bottom?
Just wait until Q4 earnings are announced. Even the execs on the all hands said they expect a recovery they just don’t know when that will be.
Have no fear Intel hasn’t yet tested the bottom