Intel (INTC) has had a nice run over the last year but to old-timers who remember when the company really mattered the stock has a long way to go. Despite hitting 52-week highs and gaining more than 20% over the last year INTC would still need to triple to get back to where it was in 2000.
Fourteen years may seem like a long time to hold a grudge against a stock but the market never forgets. Intel has made plenty of semi-convincing moves higher in the last decade but failed every time. At least so far. In the attached clip Leigh Drogen of Estimize says smart investors should pay attention when Intel reports earnings Thursday.
“The secular trend in mobile is helping them out,” Drogen insists. “Yes, they put out all these gidgets and gadgets at CES but (consumer end markets) are basically meaningless for the company.”
As Drogen sees it companies like Microsoft (MSFT) and Intel are akin to cruise liners in terms of the amount of time it takes to get them turned around and pointed in the right direction. A few missteps like Microsoft’s Surface or every single consumer product Intel has ever released can’t rock the boat when it comes to these companies’ longer-term prospects.
After a decade of doldrums Intel has so little sex-appeal in the analyst community that almost all good news constitutes a surprise. That makes almost anything that’s not an outright disappointment cause for celebration for investors.