Intel is a business without which our world would not run well. However, Intel entered into a rough patch over the last few years and has resorted to a lot of financial engineering to make things look better:

Accounting ammortization change that adds $5 billion to net income (thus from being profitable, without the change it would be a loss making business).

Intel Smart Capital - injecting equity into subsidiaries with contracted fees for those giving the money at high return rates. It looks like equity but it is just debt to keep the rating above junk.

Thus, Intel is not more deserving to be on the covered stocks list. It is too risky for a value investment. I hope Intel turns around, and that is possible, but too risky.

INTEL VIDEO

Just a quick video update here on Intel:

Intel Q1 Video Update on YouTube

All in all, for a value investment, Intel should be closer to book value. If and when that happens, I'll dig deeper to see whether there is an opportunity to play the semis cycle for the diversified portfolio.

Things have been improving for Intel lately, but my opinion is that nothing changed that wasn't already there. Thus, as the stock price is higher, the risk is higher too and the reward lower. It could double from here easily, but not close to a value investment anymore.

Video Update

20 November 2023 UPDATE - stock keeps going higher as the market is suddenly exuberant about it. The stock can go higher but also lower, as a value investor, I have nothing to look at if the stock isn't trading at or below book value, so wake me up again below $30. Somehow I think it might get there...