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Technology Stocks : INTC
INTC 40.03-1.3%Dec 1 3:59 PM EST

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To: Paul Engel who wrote (162)4/10/1997 4:19:00 PM
From: Reginald Middleton   of 990
 
The points you bring up regarding relative floats and PE is exactly why I deal in terms of cash. Cash renders the amount of floats ablsolutely irrelavant. Earnings and all of its derivative measures are EXTREMELY misleading for they are heavily influenced by accrual accounting measures which do not have a material affect on wealth or worth. Intel does have a lower valuation than MSFT though, due to the characteristics which I described in my second to last post. This has nothing to do with earnigs. PE or EPS though. If you have the time, download the INTC summary valuation from my site and compare it to MSFT, it is very enlightening. In the future, I shall post additional summaries for NSCP, AMD and other 'net related/driven companies.

For more info on the EPS is a fraud conspiracy, see exchange2000.com long posts with a lot of serious questions and a lot of serious answers, and my site at rcmfinancial.com . In the thread linked to above, an interesting question came up referring to the apparent discrepancies between INTC and the other chip makers in reporting earnings versus cash flow and book value, where I was able to clearly show how earings are a very warped measure for valuing semiconductor companies such as INTC and AMD.
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