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Technology Stocks : Intel Corporation (INTC)
INTC 36.15-0.6%Dec 24 12:59 PM EST

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To: pgerassi who wrote (139903)7/22/2001 3:00:35 PM
From: Robert O  Read Replies (1) of 186894
 
Pea:

I used the last day of the quarter on issuing debt to make an assumption that cash was not in the bank the same day. A stretch to help you see how balance sheet items can mislead. In any event, please feel free to continue to try and make book value relevant for valuing a company and forever being astonished at the fact that mrkt. cap is many many fold book. To add to AMD and INTC compute the number of years for book to 'grow' into mrkt cap for each of the S&P 500! I bet the average will be like 100 years! <g> Wow.

Look, for tech companies book is a joke to try and use as a starting point to get to some fair market value. It would take so many adjustments with so much information we don't have, why in the world are you fixated on it? Gasp, Goodwill alone (too hot, too cold, or just right) makes this exercise equal to waiting for a chimpanzee to finally type out Hamlet from mere chance. Maybe it will happen someday and the two of you can screech Eureka!

I know a much better way (our secret) estimate future earnings and discount back to today. Please don't tell anyone I told you, and after you read this please self-destruct. I mean the message <ggg>

RO

Ps. It does seem like you have at least capitulated to the fact the your original statement was faulty but I can't really tell. Let's start down a new line of thought and get on estimating future earnings, er I mean net cash flow... uh oh now look what's started!
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