Give me a break RayW!
>As to INTC, it is overpriced with $16.68 book value and
Who ever considers book value in investing, except value investors of the Graham school? Book value is considered when a company is on the verge of bankruptcy. By your logic MSFT would never have gotten where it is. Do you know what its book value is?
>the second best technology.
Maybe the second best technology for Pentium MMX, socket 7. But AMD doesn't even have a credible contender in all other product areas. Pentium, Pentium Pro (with SMP), etc. How can you make such a generalization?
>2/3 of its assets are to be depreciated from books in the next 3
> years.
This is good. INTC will have to pay less in taxes.
> Intel already controls 95% of x86 CPU market at this moment and
>could not increase it further.
So are you saying that AMD can get at most 5% of the market. The reasoning works both ways. INTC has dominated the market for quite some time. The reason the stock has moved upward is that the pie is expanding, and therefore earnings are increasing. You AMD bulls just don't seem to take that into account.
>For this kind of STABLE company, P/E should not over 5X if the risks
>are considered.
It's not a STABLE company, it's a growth company. Check the revenues. Check the charts.
>With the current 3 love squeeze from AMD/Cyrix/DEC, Intel has to cut
>price deep on its high end chips. Consequently, the earrings for Q2,
>Q3 and Q4 will erode
They only need to cut the Pentium MMX line, which is on its way out. Intel will do what it did to AMD a couple of years ago. Remember AMD had a better 486. It was faster. But Intel simply moved on to Pentium and left AMD with a obsolete product line.
DEC has had NT running on Alpha for several years. Alpha has always been shown to be faster that the Pentium. But why does DEC offer Pentium based systems? Because that's what the market wants.
You need to be a little more balanced in your assessment of Intel. I agree AMD has a good chip with the K-6. But not for long. They just don't have the deep pockets, production capacity, product breadth, brand loyalty, and research expenditures that Intel has.
>miserably. If AMD did come up with K6-300Mhz by end of year, every
>Intel CPU would have to price less than $149 to move out. Then, what
>P/E or earrings you could expect from the coming technology loser:
>Intel?
You can hypothesize all you want. I can hypothesize, too. What if Intel came out with a 1 Ghz processor next year? What would that do to AMD. Let's talk about demonstrated technology, not wishful thinking. |
