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Strategies & Market Trends : Value Investing

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To: robert b furman who wrote (72192)1/29/2023 2:27:05 PM
From: bruwin2 Recommendations

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Area51
E_K_S

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"INTC is one of the few companies that has invested billions annually into R&D."

Yes, there's no doubt that has certainly been the case. In fact about 65% of its Gross Profit goes into R&D resulting in only about 4% of its Revenue left over at EBITDA ....



And looking at INTC's current Financials they are not really a pleasant "sight", especially those red ringed numbers. Debt and its Expense is a problem, and it seems that INTC is only paying about a 3% Tax Rate. It's current Net Income would reduce by about 3.5% if it paid 25%.

BUT ..... as the green circles show, it has a very good Gross Margin and it shares do appear to be relatively cheap.

However, I guess the Bigger Story about INTC is the amount of money it is currently investing in it Manufacturing Facilities. It seems that the new INTC "management" has finally concluded that its previous "path" was not quite the right one and it is now working in a new direction based on new and updated products. If one couples that with the vast amount of experience that INTEL has accumulated over the years in this business that could certainly bear fruit in the upcoming years.

So INTC could certainly be a "Long Term Play" where one would need to keep an eye on its ongoing published results and invest on the basis of what those results reveal .....

INTC did, at one time, find Support at "A" of around $45-50 share. But that has been reduced to around $25 a share at "B". The volume traded has reduced slightly which could possibly indicate that the previous higher volumes were more related to Selling, and that has now possibly "subsided" ....

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