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Politics : Formerly About Advanced Micro Devices

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To: Cory Gault who wrote (94849)2/23/2000 10:30:00 PM
From: Epinephrine  Read Replies (1) of 1575424
 
RE: <I crack up when I read these types of comparisons on this board. Wouldn't have anything to do with outstanding shares now would it? Hey, hmaly...what did CSCO earn per share last quarter...about half of what AMD did per share...>

Cory,

Please help me understand because I think I may be missing something (I am not being sarcastic) When you buy a stock, you buy a piece of the company right? So If a company has more shares outstanding then each share is more dilluted in regards to the actual company value and also more dilluted in regards to earnings and profit. So the fact that AMD has less shares outstanding is a huge positive isn't it? Doesn't that mean that when I buy a share of AMD I am buying a larger percentage of AMD the company than I would have bought of Intel had I bought a share of Intel's common stock. And since I own a larger percentage of equity in AMD then I also have a larger percentage of their earnings and profits? That's how I always looked at it. Can you explain to me why you think having more shares outstanding is a good thing. I thought that the fact that AMD had so relatively few shares outstanding at such a low price relative to other stocks higher priced more dilluted shares was one of the reasons AMDs stock was such a great value. What am I missing?

Thanks,

Epinephrine
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