Mostly Off Topic: To all avid readers out there, I strongly recommend Intellectual Capital: The New Wealth of Organizations by Thomas Stewart. It just came out. After reading this book, you will know why certain software companies, e.g. Microsoft, have such a high market eveluation, while companies who rely heavily on physical and financial capital tend to have lower evaluations. After reading this book, I think I know why Intel has such a low PE: Analysts are evaluating Intel based soley on its physical capital, such as Fabs, treating them as costs, and are ignoring the intellectual capital. Now, I know why Intel is spending so much money on brand equity, stock options for employees, not giving up market share at any cost, etc. I think all Intel investors will feel much more comfortable after reading this book. The analysts and Market have it wrong, and once it becomes evident, Intel stock will be given an evaluation it deserves. Good Christmas present!!!
joey |
