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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 221.06-1.1%Jan 5 3:59 PM EST

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To: Mani1 who started this subject8/28/2000 11:39:47 AM
From: the plumber of 275872
 
Hi everyone!

I'm kind of new to investing but would like to point out an observation I've made.

AMD's P/E ratio over the last 4 quarters is ~33. This is on the lower end for high-growth companies (intel is 54, sun is 114) and if you look at the earnings calendar its about to get a lot lower--even assuming no profit growth in the coming earnings announcement.

If AMD posts a profit of 60 cents/share (duplicating last quarter) this will take the place of the lost 36 cents/share they posted last 3rd quarter. Again, based on this no-profit growth assumption the P/E would be ~17 (assuming a price of 35$). Obviously if they post a profit-increase--as they've done the last 3 quarters (and I suspect they will) the numbers are even more attractive--not to mention the growth-hype.

So this is only a superficial/accounting difference in the company--but may be significant to people who just take a glance. ie AMD may look like a much more attractive buy investors without any time (-;

Am I smoking crack? This is my first post, so it's quite possible..

-Kevin

Just for the record, I bought originally in January this year--those have done well, and I've bought twice more in the last month--these are even, but I'm looking for a pick-up ~October.. possibly earlier. I'm in!
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