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Intel Corporation Message Board

  • paul.ottelini paul.ottelini Dec 11, 2012 6:08 AM Flag

    Intel stock price under CEO Ottelini.

    Intel's stock price never hit $30 under Paul Ottelini, but the company had great accomplishments.
    This could be due to how the investing public perceives a great technology company such as Intel being run by a non engineer. Paul O. graduated as an economic major. Whereas, Craig Barrett, who ran Intel from 1997 to 2005, had an engineering related degree.
    This could just be the general overall perception of many large investors as a whole towards a technology company being better run by a CEO that's more in tune to the needs of a technology company to grow better overall than other non technology companies. Paul Otellini did a great job in moving Intel to a very powerful position, but now it may be time to have an engineer as CEO once again to increase the positive sentiment towards the stock itself.
    Looking back at Craig Barrett's term, the stock hit a high of $75.83 during August of 2000.
    After that, the stock traded above $30 a share in 2001, 2002, 2003, and 2004.
    But no matter how well Intel did as a company, the stock has never traded above $30 a share under Otellini.
    I wonder if Intel's board members are considering this fact when they decide to choose the next CEO.

    Sentiment: Strong Buy

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    • stock price is nice but earnings are what matters. Fundamentals were crazy under craig, that was the bubble, craig was awful imo, paul good but is he leaving for good reason? I think 4 more years under obama and that gets him to 65 so why stay? or are there not great things ahead? what does paul know?

    • Stacy Smith could be a great leader for Intel, but he does not hold an engineering degree.
      So he may continue the company on a great path, but the stock could face an uphill battle for a while under his leadership. Just thinking that the leadership is why the stock has been sufferring with such a low PE for a very long time. The breakout that we have been waiting for could be seen through a higher valuation through the leadership of a CEO with an engineering background.
      Just a thought.

      Sentiment: Strong Buy

      • 1 Reply to paul.ottelini
      • So who are some of the candidates the market is expecting at this point.
        Stacy Smith, Tom Kilroy, and Dadi Perlmutter.
        Out of the three, the best for the stock and the company's direction towards mobility would have to be Dadi Perlmutter.
        He currently lead the mobility group and holds an Electrical Engineering degree.

        The market could like that choice enough to allow higher PE valuations that could help the stock rise much faster than growth expectations alone.
        Plus, the guy was very vocal about the stock price trading under $25 during their 2011 investor meeting, expressing his view that Intel's growth and advancements in technology deserved a much higher stock price.
        We need a CEO that is a cheerleader of its stock.
        With the latest move of acquiring debt to buyback more stock strengthens this belief that the board members are tired of seeing the stock go nowhere and are willing to take all necessary steps to support the stock price rising to new 52 week highs and eventually, new all time highs.
        I think Ottelini himself senses this and is willing to step down to allow a more aggressive buying sentiment towards the stock.

        Sentiment: Strong Buy

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