Robert Daly
It's now or never
In my last article on Intel (NASDAQ:INTC), I argued the following:
The gigantic strain of building out the US semiconductor-FAB network was expending a lot more on CAPEX than cash from operations was
Intel Stock: Elemental Analysis Of An Acquisition (Rating Upgrade)
Summary
- The gigantic strain of building out the US semiconductor-FAB network has Intel expending a lot more on CAPEX than cash from operations.
- Intel still trades at around 1 X book value even after the run up.
- With an average market price for comps' average book value of 4.46 X for this group currently, even dropping Intel to 3 X seems reasonable.
- If Taiwan Semiconductor and Broadcom can get past US regulators to take over Intel's FAB and design business, it could be a great situation for current investors.
- As long as the rumors of deal making remain in the news, Intel's stock should remain at materially higher levels than the 50 day moving average in my opinion.
I'm a full time value investor and writer who enjoys using classical value ratios to pick my portfolio. My previous working background is in private credit and CRE mezzanine financing for a family office. I'm also a fluent Mandarin speaker in both business and court settings, previously serving as a court interpreter. I have spent a good chunk of my adult working life in China and Asia. I have worked with top CRE developers in the past including The Witkoff Group , Kushner Companies, Durst Organization and Fortress Investment Group.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of INTC, QCOM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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