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Politics : Ask Michael Burke

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To: Joseph G. who wrote (20604)7/17/1997 7:35:00 PM
From: Thomas M.   of 132070
 
Joe,

You are right about the relative PE. I looked it up in Value line, and it seems to be more like a 75% premium, not 100%. So, it is right about in line, not undervalued. If the year is half-way through, and MOT is beating estimates and reaccelerating growth, using this year's estimates is quite reasonable. They will probably be exceeded. But that is not the point. You don't make a very good comparison, choosing INTC, as MOT is first and foremost in the cell-phone business. Semiconductors are just 26% of MOT's business, and only a small part of that is for PC's.

Tom
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