Q1 2019 Earnings conf calls #1 – HASI, WELL, CY & INTC

Disclaimer: these are my opinions, not recommendations

I worked thru 4 of my Q1 earning conference call transcripts: HASI, WELL, CY and INTC. I find these conference calls both educational on a business strategy / communications perspective and a specific company performance level. There is also some value in learning which analysts ask good questions and which just toss a slow-pitch ‘gimme’ questions. Guess who you ignore?

The two that were terrific both in terms of company execution and depiction of strategy: HASI and WELL. My allocation to HASI is tapped out, but i will soon (Q2/3) turn back on the DRIP machine (i had turned off due to valuation). WELL is one to watch and I will both turn on DRIP and watch for opportunistic purchases to double my current holdings (in IRA).

CY was not bad, but their business is a tough one and they admitted that visibility is a bit opaque at best. This is an opportunistic purchase imho trying to get a dividend yield ~3.0% from the 2.6% today. With that said, I believe their IOT strategy is solid but will be a 2020-21 story. CY and MRVL are my favorite IOT connectivity plays (others like SWKS), but this is a longer term narrative and i strongly believe there will be lower prices ahead to take positions.

INTC was terrible on a couple of fronts – talk about new CEO birth with fire. Declining units, competitive ASPs, inventory write-down and worse a 2H hockey stick in demand because customers are working thru 2018 purchases / supply. Really? What happens if demand in cloud and enterprise does NOT pick up in 2H? I have seen this movie before and there will most like be much lower stock prices. The one ‘good’ nugget was the talk about 5G edge and infrastructure; however, that is a small portion of the overall product mix and a 2020-21 story as well (depends on 5g roll out plans across the globe)

Leave a Reply

Your email address will not be published. Required fields are marked *