This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Sell Intel Now: It's in the Teens

Stocks in this article: INTC AAPL RIMM MSFT

NEW YORK ( TheStreet) -- At the beginning of November, I wrote an article -- 2013 Prediction: Apple and Facebook Will Fly, Intel Will Die -- that was widely read throughout the halls of Intel (INTC - Get Report).

How do I know this?

When TheStreet gave me a fancy title, Director of Social Media, it didn't provide the corner office I requested at 14 Wall Street. It didn't give in to my demands for a lifetime supply of Jim Cramer bobblehead dolls (those things break if you throw them hard enough). And it would not subsidize the cost of my recently-purchased Macbook.

I guess they were being reasonable and corporately responsible.

TheStreet did give me access, however, to our complete slate of Website traffic data. (By the way, thanks (!), we have been kicking butt lately). Among other things these data allow me to see the Internet address that "refers" a user to TheStreet.

The above-linked article made the rounds over 1,000 times via an internal Intel blog -- aka, the Intranet. Whoever included the story added one word to the end of the title: Yikes.

I didn't think much of that until I wrote a bearish article after CEO Paul Otellini stepped down and received a call from Intel's public relations/communications department.

They weren't happy. They made their case. They warned not to count Intel out. But I stood my ground. Here's what I told them, in a nutshell: Let's be honest here, if Intel did not miss mobile five years ago ... if Intel chips powered every Apple (AAPL - Get Report) iPhone, we would not be having this conversation right now.

We agreed to keep an open dialogue going forward. I haven't heard from Intel since.

It's my sense that they're operating in defensive denial mode over there.

Witness a classic case of a company accelerating its own demise.

In the "Intel will die" article, I wrote:

I don't want to be anywhere near Intel. I can't put faith in the dividend yield providing support above $20 as erosion of the company's core business continues. I'm afraid INTC in the teens becomes a reality next year, if not sooner.

And here we are, with INTC fighting -- sort of -- to scratch and claw its way back to $20. It's so bad that it's not just fighting to get back to $20, it has to fight just to scratch and claw.

Some suckers will buy this thing in the near-term on value. Has Intel accelerated its dividend payment yet? If it does, we might see a pop. Fiscal cliff deal? That's good for some upside. Don't believe and definitely don't buy into the hype.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs