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Non-Tech : Amati investors
AMTX 1.6200.0%Dec 4 3:59 PM EST

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To: Pierre-Yves Loriers who wrote (5561)11/13/1996 10:47:00 PM
From: AK2004   of 31386
 
Pierre-Yves
ok, let's look at basics of the 1st company that you have listed - MSFT. From the basics it should be clear that the value of the company equals to the present value of distributable earnings that is the discounted (with risk adjustment) of all distributable earnings like dividends averaged over all possible scenarios.
Well, since MSFT does not pay much of a dividends what is the basic value of the MSFT stock? Well, it is close to zero. On another hand under certain scenarios amtx may distribute huge dividends.
So what was your point again? <Big G>
I am not saying that the value of the amati is higher than Microsoft nor that Microsoft is worthless it is just there is more to it than just PSR or PE or any other financial ratio based on current state of business.
Regards
-Albert
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