Steve,
I do not think so. A PE under 10 is low. A PE under 10 for AMD is historically high.
I am not sure if we are speaking the same language. PE of less 10 is low, 20 is normal > 50 is high, > 100 is astronomical.
AMD's earnings are out. Do you still feel the same way?
Nothing changed. AMD is making more per share, growing faster (or shrinking slower), stock price is lower, AMD is most likely gaining market share. AMD is in as good a competitive position (vs. Intel) as it has ever been in both design of microprocessors and process technology.
Intel made $1.51 in 2000.
AMD made $2.05 in 2000.
2001 estimates:
Intel $1
AMD $2
Intel stock price $30
AMD stock price $18
What exactly is it about Intel that will allow it to earn half of its competitor while maintaining stock price double, resulting in the relative stock price 4x higher?
This inequity will at some point come to closer to some kind of balance, and you better hope it will get there by AMD moving up to Intel level, rather than Intel moving to PE level comparable to AMDs, which I am sure know would result in Intel being below $10.
I am not saying it will happen, or that I wish it happened. It is just a reminder to your earlier post where you claimed AMD to be overvalued. If Intel ever gets as "overvalued" as AMD, most people here (except maybe Paul) will be wiped out.
Joe |
