Intel: Don't Bet On It Catching Up To TSMC
The author of this article is bearish on Intel for three key reasons. First, they believe that Intel may struggle to catch up with Taiwan Semiconductor Manufacturing Company (TSMC) in foundry technology, which is crucial for producing smaller, faster, and more advanced chips. TSMC's CEO has stated that their upcoming chip, N3P, will be more advanced than Intel's 18A chip. Second, there are several business headwinds facing Intel, including a material inventory correction in the Data Center and AI segment and weak demand in the Network and Edge segment. These challenges could lead to market share loss and impact Intel's outlook. Finally, the author believes that Intel's valuations are steep and do not offer a sufficient margin of safety. Intel is currently trading 74% above its longer-term median EV/EBITDA ratio. In conclusion, the author sees more downside potential for Intel and is not optimistic about its ability to close the technological gap with TSMC.
Ramelius Resources Limited (RMLRF) December 2023 Quarterly Conference Call Transcript
Ramelius Resources Limited recently held its December 2023 quarterly conference call, providing an update on its operations and financials. The company reported a quarterly gold production of 68,524 ounces, which is at the upper end of its quarterly guidance range. The increase in production was primarily due to a greater contribution from the Penny underground mine and ramping up of mining operations at the Symes' open-pit operation. The company also reported strong cash flow, with operating cash flow of AUD 68 million and underlying free cash flow of AUD 45.7 million. Ramelius upgraded its second-half guidance to 140,000 to 155,000 ounces, resulting in an increased full-year guidance of 265,000 to 280,000 ounces. The company expects strong cash flows to continue over the rest of the financial year. In terms of costs, the company reported all-in sustaining costs for the December quarter of AUD 1,837 per ounce.
10 Investment Themes To Kick Off 2024
As we enter 2024, there are several key investment themes that will impact portfolios in the year ahead. Uncertainty remains a certainty, with the Federal Reserve's rate expectations swinging from cuts to hikes and back again. Economic indicators such as inflation, unemployment, and liquidity conditions should be monitored to preempt any reactive policy shifts. The debate over the U.S. economic trajectory is ongoing, with a focus on the stubbornness of the Fed in its inflation battle. Positioning, profits, and policy indicators could signal a shift back to risk assets, and areas such as corporate credit and emerging markets should be considered. Bond market volatility is anticipated to give way to equity volatility in 2024, driven by uncertainties around growth, inflation, and corporate earnings. A strategic pivot towards high-quality assets with moderate duration is advised as interest rates flatten. BB-rated bonds in the high yield space present an opportunity for measured exposure due to historically high yields and rising quality. While large-cap stocks have dominated returns, small and mid-cap stocks should not be overlooked, particularly in an economic recovery. Digital assets are maturing, and the launch of Spot Bitcoin ETFs in 2024 could integrate them into traditional investment portfolios. Global elections and geopolitical conflicts could influence market impacts, but they have historically had more temporary than lasting impacts on asset prices. A softening U.S. dollar could present opportunities for emerging markets and select G10 currencies. Investor sentiment towards China is bearish, but the current valuations of Chinese stocks present potential opportunities. In the commodities market, active real asset allocations are favored over passive allocations due to continued divergence in fundamentals, momentum, and trend.