That's pretty pathetic, worth more dead than alive.
On August 8th, in the midst of the market ructions of a pretty wild week, INTC traded as low as $18.84. $20.95 last in pre-market action.
From Barron's, August 9:
Shares of chip maker Intel, described as “unownable” by one analyst, are priced for the company’s lights to be shut off. That’s an unrealistically dire outlook.
Intel stock has gotten so cheap that it now trades around tangible book value.
The shares, which are off 4.7% Friday to $19.53, change hands at right about their tangible book value, which Barron’s calculates at around $19.50 per share.
It’s rare to find a major company—technology or otherwise—trading around tangible book value, because the measure approximates liquidation value, and most big companies are worth considerably more than an operation ready to turn off the lights.
Shares of peers Advanced Micro Devices and Nvidia trade for more than 15 times and 50 times tangible book value, respectively. Both AMD and Nvidia are much more profitable than Intel, however.
Intel may be near a bottom. The stock hit a recent low of just under $19, and tangible book value could prove to be a floor for the share price.
Tangible book is a conservative measure of book value that strips out goodwill and other intangible assets. Barron’s calculates Intel’s tangible book at around $83.4 billion, the same as its market capitalization. Intel’s valuation relative to tangible book was noted on X recently by Rihard Jarc, co-founder and chief investment officer of New Era Funds
Most of Intel’s assets—over $100 billion—are its semiconductor plants that are classified under plant, property and equipment. The company has net debt (short- and long-term debt less cash and equivalents) of more than $30 billion, and its credit rating was just downgraded to Baa1 from single-A3 by Moody’s, which cited weaker profitability.
Intel’s stock has been hammered this year, falling over 50%, and a good chunk of the drop has come recently. The company offered more bad news in its second-quarter earnings report on Aug. 1.
Adjusted profits of two cents a share missed expectations for earnings of 10 cents, and the company offered weak guidance for the third quarter. Intel, which is spending heavily on new plants, also eliminated its dividend....
....MUCH MORE
And from Business Insider via MSN, August 16:
