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Daily Brief 12/30 – Vaccine Bottleneck and Intel

Vaccine Distribution Woes: In October Health Secretary Azar said that by year end 100 million vaccine doses would be distributed and every American would have access to doses by March 2021. In November Health Secretary Azar said 40 million doses would be distributed by the end of year. Now we won’t even hit 20 million by the end of the year.

According to CNN, “One count, from the US Centers for Disease Control and Prevention, shows about 11.4 million doses have been distributed as of Monday morning and about 2.1 million have been administered — not even close to the goal Warp Speed originally set.” The Bloomberg source below shows 2.32 million, still well short.

Source: Bloomberg

We certainly hope these hitches are worked out or 2021 will be another long year. In terms of markets (what this newsletter is all about), keep a close eye on distribution progress here.

Intel Stock Rises: But not why you think, rather it’s because of shareholder activism! Per CNBC, “Third Point, the hedge fund led by Dan Loeb, is urging Intel’s board of directors to hire an investment adviser to explore “strategic alternatives” after the chipmaker lost market share to TSMC, Samsung and AMD.”

Dan Loeb is an investing legend and we have immense respect for him and his team. But it’s just so funny that the only way Intel stock goes up is if an activist hedge fund investor tells company management why they’re terrible.

Source: Koyfin – Semiconductor index compared to Intel stock

In his letter, Loeb says, “The loss of manufacturing leadership and other missteps have allowed several semiconductor competitors to leverage TSMC’s and Samsung’s process technology prowess and gain significant market share at Intel’s expense,” Meanwhile, AMD has eaten away at Intel’s share of its “core PC and data center CPU markets,” he continued.

We are skeptical of anything Intel can do to stem this secular tide, but if anyone can do it it’s Dan Loeb.

Tweets and Charts we like:

For any Boomers reading this, here’s your Nifty Fifty

That’s your millennialmkts update! Thanks for reading, if you like this content please consider following this blog and following us on twitter @millennial_mkts

Posts are not investment advice or endorsements.

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