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Technology Stocks : INTC
INTC 38.16+2.5%Nov 7 3:59 PM EST

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To: Fred Fahmy who wrote (663)8/24/1997 6:32:00 PM
From: Harry Landsiedel   of 990
 
Fred. Re: "Whether or not I agree with this type of valuation I'm haven't quite decided."

This approach made sense to me when I imagined that I owned the whole company. Then I look at what cash comes to me each year as an owner. First come profits, then depreciation, but for manufacturing companies, I have to "give back" money for capital spending to keep the business growing. Of course in reality, I "reinvest" most of the earnings except dividends, but the idea is sound.

Also, this approach allows me to adjust all "earnings" to equalize them. For example, for financial companies, I don't have to give any money back for capital investments.

As a result of this thinking I look at my portfolio as a conglomerate, with several different companies that I own. Fortunately, INTC is my biggest holding.

Hope this helps to turn a concept into a useable idea.
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