Intel: There Are Many Reasons To Sell (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

• It is good that management seems more forthright about the business' prospects. Unfortunately, this warns of a weak revenue outlook ahead.
• Despite improved cost controls and non-core asset divestments, Intel faces higher-than-expected costs that lead to a worse-than-expected margin outlook ahead.
• Intel's foundry struggles to secure committed volume from customers and is losing the speed-to-market edge it had vs. TSMC.
• Valuation remains stretched versus historical averages, while technicals and deteriorating fundamentals suggest further underperformance against the S&P 500.
• In a turnaround, management's bandwidth needs to be laser-focused on the most troubled aspects of the business. So a recent senior management-level attrition does not help matters.

Read the full article here.