Sunday, January 10, 2021

INTC stock: I like to be a value investor

Jan. 10, 2021


I like to learn how to be a value investor in 2021. I like to take less risk since I have 10 years savings at my current job. I like to take less risk and focus on long term. If market is not irrational on Intel stock, then I like to take advantage of it, and buy 500 shares and then catch short term rebound. 

Learn from Yahoo -> finance -> conversation

$AMZN P/E=93
$GOOG P/E=30
$BABA P/E=23

I’m crunching the numbers but according to my calculations Intel generated a larger profit in 2020 than Tesla generated in its entire history...

Wall Street is a popularity contest.
Who’s gonna be the cool kid for 2021?

Amazon didn't start with a PE of 93 remember?
In December 2012 AMZN P/E was over 3600
Stock price then was $180
Stock price 8 years later is over $3100

Irrational, and definitely won’t last.

TSLA market cap = about $1.6M per car delivered last time I checked. Ford: $16K per car.

Don't know of about Amanda much but goog is one of the most undervalued tech stocks on the market

The rationale some of the investors were giving was P/E ratio is not what matters, what matters is how many people are still willing to buy TSLA at PE ratio of 1500.

Seriously? Looked more like a greater fool theory to me. Traditional metrics of valuation are scoffed at, surest sign it is a bubble.

The bubble may not burst anytime soon though. TSLA may even hit 1 trillion valuation soon.
But this WILL unravel one day and it will be nasty for many gullible individual investors, the Wall St crooks know all exits to use as soon as the party ends, before others.

It really is over priced. Every car company is working on electric cars and new companies are starting up. The market really is not that large. It is just a replacement market for the current cars on the road. Over time they will switch to Hydrogen or Battery. The bottom will fall out of TSLA soon.

$46.00-$47.00 would be a nice entry
My expectation for 2021: Intel will cooperate more with TSMC, Intel is going to get some market share on the GPU front, new product lines and new image is going to help boost B2C sales, network might be down compared to last year, if Intel gets more exclusive rights, Intel will be better positioned. Intel is the main provider for server for Alibaba currently; and also provides notebooks to a lot of Chinese businesses.

If you see it drop below $50 (preferably $47), it’s time to load up. It takes panic to get in $40’s and normal trading gets back into $50’s.

I buy companies When they are on huge discounts, As warren says you don't know what the share price will do Tomorrow or in a year or so. Their will always be problems facing the company but if a you invest in a company who can afford a few missteps over the long term they will fix the problem and you will make money, Intel is a company who can afford few missteps and for that reason the problems will be fixed in few years and then Intel will be a trillion $ company with the T. Just watch.

Comparing GE and its debt with Intel is an idiotic adventure. Intel has a very solid Balance sheet in case you don't know. They don't face any of the problems GE faces.

GE collapsed because bulk of its earnings were from GE capital decision which is financial engineering, not real engineering. Then came 2008 collapse and it was done, Jack Welch kept it a secret for too long. Coupled with pension liabilities for old manufacturing division, GE was done coz it did not have anything real

GE has /had debt in 100s of billions of dollars, it was a castle in air. There is no comparison with INTC.

Actionable Items

I should read about INTC stock, so that I can learn so many things through those discussion. 

No comments:

Post a Comment