Intel Continues To Lose To Competition (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• 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.

Read the full article here.