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Politics : Formerly About Advanced Micro Devices

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To: niceguy767 who wrote (102902)4/7/2000 12:51:00 PM
From: Pravin Kamdar  Read Replies (4) of 1576029
 
Thread,

Another interesting comparison that shows the undervaluation
of AMD is given by looking at LSI Logic. The stocks are
trading neck-to-neck in price today.

LSI AMD
price/sales 11 2
Q1 estimated EPS 0.25 0.45

AMD will probably have EPS three times that of LSI this
quarter and a higher growth rate, yet the stocks trade at
the same price. If the market gave AMD the same valuation
that it is giving LSI, we would be trading at $225 per share
right now. LSI Logic is currently a market darling, but AMD
is the new girl on the block. Everyone is going to want to
pick her up.

Pravin
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