James Covello really sounding like a broken record.
This is his most recent comment about Intel.
James Covello, who has one of the few Sell ratings on Intel stock, doesn't give a flying whatever about ultrabooks. Last Wednesday he wrote simply that when Intel's gross margin declines, the stock tends to decline. He even had a chart, and it did seem to show a correlation. Certainly, that's worrisome after a 14% run-up in Intel stock this year and a 29% rise in the last 12 months.
Those that listened to him missed over a 20% run up in the stock. And by the way, he has been raising the stock price since he had it at $15 while maintaining a hold or a sell on the stock. He currently has a price target of $23. Why not just stick to the $15 target so that he can look even more ridiculous?
If you plot the the gross margin agains the Intel price, there seems to be a correlation over the last 10 years. There is likely some relationship between the two but it is not a cause-effect relationship. http://goo.gl/15yTm
Oh! Intel price allso shows a reasonable correlation with the QCOM PROFIT MARGIN too. http://goo.gl/M89OU