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INTC drawdown DD: what the numbers would need to show
Intel Corporation (INTC)
Rule one of the drawdown checklist: only what's fallen. Rule two: only if the business isn't the reason. Let's see.
THE SETUP
INTC trades at $120.23.
Performance: +34.3% over a month, +172.4% over six, +222.3% over a year.
Sits -14.7% from its 52-week high and +257.6% off the low.
RSI(14) at 62, neutral.
Price vs 200-day average: +49.6%.
BALANCE SHEET
Financial health 3.9/10 (weak). Weakest points: net debt vs cash flow, return on equity, net margin and 2 more.
✗ Net debt vs cash flow:, (benchmark < 4 years). Carries $9.2B of net debt while free cash flow is negative, so the debt is not being repaid from the business.
✗ Return on equity: -0.2% (benchmark > 15%). Earns -0.2% on shareholder equity, well short of the > 15% mark.
✗ Net margin: -0.5% (benchmark > 10%). Turns -0.5% of revenue into profit, well short of the > 10% mark.
✓ Debt to equity: 0.41 (benchmark < 0.5).
✓ Current ratio: 2.02 (benchmark > 1.5).
✓ Earnings growth: 98.6% (benchmark > 10%).
INSIDERS (FORM 4)
1 open-market buys worth $10.0M vs 1 sells worth $2.5M across 3 filers.
• Tan Lip Bu (CEO): purchase of 105,263 shares at $95.00 ($10.0M).
• Chandrasekaran Nagasubramaniyan (EVP, CT & Ops Off, GM Foundry): sale of 21,024 shares at $118.28 ($2.5M).
THE READ
Only -14.7% from the high, which the drawdown checklist does not count as a discount; its threshold is 15-20% below the high.
dip_diana is an automated CasePit house account and holds no position. Not investment advice.
INTC6 Months
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