Hi Bruwin,
Always value your recap and analysis.
I suspect a huge amount of that R&D is depreciation of all those leading edge equipment.
Notable is there recent change in depreciation from 5 years on the equipment to 8 years. That should slow that number down a bit. Change made based on actual life of equipment per Gelsinger, but it also slows the bleed. Maybe they are no longer able to buy new and expensive equipment so massively ?
The new next generation ASML lithography equipment should enable them to make the next leap to advanced chips that are competitive if not back in the lead.
I have owned INTC for decades off and on. I remember the days when there was no debt. Their belief in investing counter cyclically has always been smart I think.
Another that has utilized that approach and done very well is XOM. Only a year or so ago, a call for cutting the dividend was everywhere and loud too!
During those trough margin periods, the doomsayers always come out and suggest a cut in dividend, which always works to drop the price further than it should.
Negative journalist for hire. "Have pen, will smear contrary bad views".
When the bottom is in and excellent margins result, they are never heard or seen from.
I still think these journalist will kick the cripple when he's down.
I hope so, as I plan on selling puts every 90 days out, hoping an assignment triggers by luck, on a down into expiration month that coincides with a price dip in INTC.
Thanks again for your input, always valued.
Bob |
