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Politics : Formerly About Advanced Micro Devices

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To: AK2004 who wrote (28721)2/24/1998 10:22:00 AM
From: Reginald Middleton  Read Replies (2) of 1572715
 
<:-)). Fair value of a company, as it defined in all finance books starting from fairly primitive upto very advanced, is equal to the present value of the future cash flows and that is it.>

This should reveal you for the charlatan that you appear to be. You have two companies with the ability to generate $100 of future cash flows as discounted to present value. Company A has 2 billion dollars of gold assets in its coffers, company B has nothing but the $100 worth of expected cash flows.

Do you really mean to tell me that you would value these two companies as equals? Would you expect to pay $100 for both of these companies? You should spend less time looking in textbooks and more time paying attention to reality.

Many of the members in this thread are quite rude, not to mention not very well learned in finance. Of course, there is nothing wrong with not being a finance major, but to profess you know what you are talking about, to insult those that post to the thread, and then to actually post the garbage you just posted is unacceptable. After reading your method of valuing a company and reading my response, do you really think anyone should take you seriously?

I never gave you my credentials or professed to be a guru. I simply proffered my (polite) opinion and supplied documentation to back it up. Let's see you do that.
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