Friday, July 28, 2023

Intel Ericsson -- July 28, 2023

 The link.

Do you remember when you were a kid and spent hours looking at "Can You Find It" in the "Hidden Objects" or whatever it was called in "Highlights Magazine"?

Fast forward.

Do the same thing with this headline:

How many "things" can you find concerning with that announcement?

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One. Two failing companies partnering.

My dad always used to tell me, when two companies "merge" one is likely failing.

Two.

5G. "We're" moving onto 6G. Yes, of course, 6G won't be here for awhile, but when talking to your investors, you don't talk about a "mature" industry" or an old technology. One talks about "the next big thing."

Three.

The cloud. LOL. When you think "Cloud" do you think of either INTC (Intel) or Ericcson. LOL. Not me.

Three-b.

Here are just some of the big "Cloud" players with very deep pockets: Amazon, Apple, Google (Alphabet), Meta (Facebook). I'm sure I've missed a few.

Four.

Look at their "ticker-symbol" graphs. Not exactly promising. Except as trading stocks.

Five.

I know nothing about Ericcson except that it's "telephone."

"Telephones" are now a mature industry; no growth. The big companies? Samsung, Apple. Phones are simply their bread and butter now. They all have deep pockets and deep penetration. When was the last time you bought an Ericsson phone?

Six.

On the other hand, Ericsson pays almost 5%. Intel pays 1.4%.

Seven.

On a day the NASDAQ surges, Ericsson is likely to go negative. On a day the NASDAQ surges, INTC goes up over 5%. A great trading stock.


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