Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 200.46

-17.2%

Feb 4 3:59 PM EST

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To: jjayxxxx who wrote (7209)	8/31/2000 7:29:05 PM
From: niceguy767	Read Replies (1) of 275872

jjayxxxx: "Trapp named Advanced Micro Devices Inc. (AMD), which he said now has the fastest working chip. It is both a "value and growth stock," trading at 12 times its multiple, he said." Comment: Once again, tech stock p/e multiples are frequently higher than their growth rates...AMD's current p/e based upon Y2000 earnings of $3.50 (my low estimate...high is $5.00)is about 11 and AMD's revenues in Y2000 will be around $5 billion up from around $2.8 billion for a growth rate approximating 70% and with the potential of repeating such a growth rate in 2001 as Dresden continues to ramp up and as Athy market share expands not to mention flash outstanding growth prospects...It is highly unusual for a tech stock such as AMD growing at 70% per annum with such an incredibly strong product line as AMD and with such great growth potential ahead of it to be trading at only 11 times Y2000 earnings...Most tech stocks exhibiting AMD's fundamentals (i.e 70% growth rate)are trading at 50 times earnings at the minimum and some at 100...Wouldn't it be nice for AMD longs if normalcy reigned and AMD were trading with a p/e of 50 to 100 based on $3.50...Improbable yes, impossible no!!! In any event, huge, huge upside potential here!!! Got that feeling again that today is just the beginning of a major upswing in price for AMD now that it has closed above $36!!! Only minor consolidations ahead until the $45 to $48.50 range is once again recaptured...and then, no holds barred, but let's get there first...

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