Intel! The growth is gone, looks more like fraud :-( | Summary and Q&A

TL;DR

Intel's stock has declined by over 50% since the new CEO took over, with disastrous earnings and destroyed revenues. There are concerns about the dividend's sustainability and potential accounting fraud.

Key Insights

• 😘 Intel's stock has declined significantly under the new CEO's leadership due to poor performance and low investments.
• ❓ The company's financial highlights show a significant decline in revenues and gross margins, as well as no earnings per share.
• ❓ Concerns about the sustainability of Intel's dividend have arisen, especially considering the company's ongoing poor financial performance.
• 🤨 The change in accounting practices at Intel, which artificially improves profits, raises questions about the management's integrity and trustworthiness.
• 😓 Intel's guidance and projections have been proven wrong, casting doubt on the company's ability to deliver on promises and regain product leadership.
• 🇨🇷 The company is focused on cost savings and regaining performance leadership in the next two years, but skepticism remains.
• 😉 Intel aims to win market share and believes in sustained long-term demand, but some question their ability to compete and deliver leadership products.
• 🎁 Investors should carefully consider the risk and reward of investing in Intel, with potential opportunities presenting only when earnings start to improve significantly.

Transcript

Intel good day fellow investors a lot to discuss here earnings Outlook risk and reward dividend sustainability and also a little bit of fraud when it comes to Intel these days let's start if you don't know Intel is part of our YouTube portfolio where we try to learn on companies and how to best nail the better risk and reward situations and Intel i... Read More

Questions & Answers

Q: Why has Intel's stock declined since the new CEO came in?

The decline in Intel's stock can be attributed to poor performance, low investments, and the previous CEO's focus on cash flows rather than sustainable growth.

Q: What are the concerns about Intel's earnings and revenues?

Intel's earnings have been disastrous, with revenues, gross margins, and operating income all experiencing significant declines. Revenue guidance for the next quarter is also down, indicating further challenges.

Q: Is Intel's dividend sustainable?

While Intel has maintained its dividend for now, there are doubts about its sustainability, especially if the company's financial performance continues to worsen.

Q: What is the concern regarding potential fraud at Intel?

The change in accounting practices that extends the useful life of certain machinery from five to eight years is seen as accounting manipulation and potentially defrauding investors, as it artificially improves profits.

Summary & Key Takeaways

• Since the new CEO took over in February 2021, Intel's stock has declined by more than 50% due to poor performance and low investments.

• The company's financial highlights show significant revenue decline, destroyed gross margins, and no earnings per share.

• Intel's guidance and projections have been proven wrong, raising doubts about the management's ability to deliver on promises and reach product leadership.