fred, the ask michael burke thread has nothing if not a lot of "color." only on a thread like this could a company earning $8b be a pos. i mean, they must have done something right, huh? ;-)
i don't see intel as a bunch of "scamsters." however, i'm sure you have observed people in your line of work manipulate accounting. it happens all the time in manufacturing. one group wants to reduce their scrap by pawning it off on someone else. this tendency is human nature. net scrap stays the same - you just process it... ;-)
i have observed so many bs games like this it's silly.
comparing intel's earnings to a tbill is one way of valuing stocks. by my way of thinking, in rational times, one compares all investing alternatives and chooses the best one.
btw, using 25% going forward (which i would say is the high end of possible - assuming we go w/o a recession for another 20 years), intel will generate $300b less than a guaranteed tbill at 6.63%.
if i offered you $1.083t (trillion), guaranteed, for your $300b over the next 20 years or i offered you the expectations of $700b over 20 years for the exact same investment, which would you take?
every day you decide to take the latter. the name "intel" alone is apparently worth a 33% reduction in returns over 20 years given an expected 25% intel growth rate.
that is what i call "goodwill." ;-) |
