Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: bruwin who wrote (72196)	1/29/2023 2:39:13 PM
From: Elroy	1 Recommendation Recommended By petal Read Replies (2) \| Respond to of 78958

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 ..... Hmmm, how do you do this? You Buy Intel, and then when they report disappointing results and the share price craters, you sell it at a loss? You should only buy Intel now if you have some reason they will in coming years reverse their recent technology decline and surpass the technology of their main competitors. But.....how can you convince yourself that that is the most likely outcome?

To: bruwin who wrote (72196)	1/29/2023 2:52:16 PM
From: robert b furman	1 Recommendation Recommended By Area51 Read Replies (1) \| Respond to of 78958

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