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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 223.53+1.1%3:59 PM EST

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To: brushwud who wrote (77317)4/16/2002 10:47:39 PM
From: niceguy767Read Replies (2) of 275872
 
brushwud:

c'mon now...INTC's goodwill is $5 billion that now doesn't get factored into eps...That's close to $1 dollar eps per share, assuming the bulk of goodwill is impaired...Looking at it another way, INTC's earnings over the past year have been overstated by $1/share, once again, assuming the bulk of the $5 billion is impaired...In other words, if goodwill written off in FY01 to reflect accurate goodwill value, INTC's net income of $1.3 billion in FY01 is reduced by some portion of that $5 billion in goodwill...What a different image is presented if INTC were to have reported red ink in FY01, which, imo, they would have had goodwill been valued realistically on their FY01 balance sheet...

Again, it may benefit the investor to compare INTC/AMD S/E trends...Even without goodwill, INTC's S/E is declining while AMD's is appreciating...S/E comparative trends are a very, very strong indicator of actual relative performance...
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