Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 216.00

-0.7%

3:59 PM EST

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To: Maverick who wrote (9441)	9/21/2000 10:03:21 AM
From: niceguy767	Read Replies (1) of 275872

Maverick: Thanks for posting the Savvy Investor article...AMD's glowing prospects are articulated exceedingly well...A couple of points that might reinforce that which they are saying: 1. Normally, the p/e multiple for fast growing positive earnings companies exceeds the revenue growth rate...If based upon Y2000 estimate of $billion in revenues (i.e 70% current growth rate) and an eps of $3.50, AMD would be trading over $200 right now...Assuming a 40% revenue growth rate over the next 3 years, which could easily prove conservative, a price of $150 for AMD today can be rationalized... 2. Dresden is not even at 50% capacity and AMD's Athy is profitable right out of the chute (something that is unheard of for new product intros)...Increasing Athy volumes and increasing ASP's throughout Y2001 are the precursor to an "explosion" in earnings in Y2001 dwarfing Y2000's outstanding earnings performance in a relative sense... 3. Contrary to current and persistant negative analyst viewpoints, AMD's Y2000 is not shaping up to be a one year aberration, but has in fact, served to lay the foundation for a company whose leading edge technologies in both flash and microprocessor markets will continue to break away from the pack in the years to come...The best is yet to come...The next 3 years is looking awesome for AMD...

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