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Politics : Formerly About Advanced Micro Devices

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To: Reginald Middleton who wrote (28590)2/20/1998 8:52:00 PM
From: Jefferson Prescott Dewhurst  Read Replies (1) of 1572673
 
Reginald,
You keep making my points for me this is a delightful discussion!
<<Without a single significant change in actual assets and market conditions, NSCP's share price was halved in a matter of months.>>
Exactly. NSCP's share price was not based on any tangible hard assets but on a multiple of estimated future earnings and as such was a very high risk investment. As it turned out the earnings estimates never materialized and the stock price gravitated toward asset value which in the case of netscape is intellectual property and the value of such to a potential aquiring entity.
<<The only to prove the company's assets are worth $19 a share is to have a entity purchase the assets in thier entirety at $19 per share>>
This is exactly what the happens every day as entities(individuals & institutions) purchase AMD's assets @$19/sh.
Dewy.
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