Jim Cramer: Intel's Not Best of Breed Anymore
YKhan
hocking Intel and calling AMD names forever. So it's interesting to see
him change his mind completely. Enjoy.
Yousuf Khan
[quote]
Intel's Not Best of Breed Anymore
By James J. Cramer
RealMoney.com Columnist
1/18/2006 8:38 AM EST
The Intel that I became an Intel-aholic about is no more.
It simply isn't that well-run anymore, as its misses with AMD,
Broadcom, Marvell and ventures show.
Mark this one for sale on any bounce.
Time to 'fess up to Intel's woes. The Intel that I became an
Intel-aholic about, the one that I couldn't keep myself away from, is
no more.
Intel, to be elite about it, simply isn't that well-run anymore. It
can't forecast -- the one good takeaway from last night's report is the
banning of the moronic midquarter updates -- it is getting smoked by
AMD and it can't react to shortages in a timely fashion.
It let Broadcom and Marvell take the next generation of chips away. It
could have bought either one of those, but instead bought tons of bad
companies.
Its venture capital arm produced nothing worth taking ownership of. And
its management looks and sounds like the management I expect from, dare
I say, a food company, or maybe even an apparel outfit, to test the
lows of imagination. Actually, that's a bit of an insult to VF Corp.,
which is better-run than Intel, and I never thought I would say that.
The place, long run by the smartest Ph.D.'s in the world, now seems to
be run by salesmen.
As long as Intel was best of breed, it had to be owned. I don't want to
sell it when everyone else is selling it, and I know that Intel's board
-- smart people -- is aware of the company's recent decent into
mediocrity. Still, I want to mark this one for sale on any bounce. It
just can't get its act together anymore.
Random musings: There's a silver lining to Intel's idiocy in the market
with the opportunities we'll now have to get into stocks because of it.
Find out what I'm thinking by watching my special report for
TheStreet.com's Street Watch.
[/quote]
brunob...@yahoo.com
growth mode as they once were.
I would suspect that the next few years will test this company as other
players in the market will grow and move in on intel's turf.
Yousuf Khan
Intel is not in growth mode anymore because they failed to realize that
they must share the playing field, because with more teams in the field,
you get a more exciting game with more spectators.
The sports analogy is more than just a metaphor here. Professional
sports leagues have long realized that the path to more riches is more
competition -- i.e. more teams. The leagues don't do better than when
the championship is wide-open and lots of teams are competing for the prize.
Yousuf Khan
--
There is no failure, only delayed success