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Politics : Formerly About Advanced Micro Devices

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To: Reginald Middleton who wrote (28741)2/24/1998 11:07:00 AM
From: AK2004  Read Replies (1) of 1572742
 
Regy
"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."

It might be a shock for you to find out but the only effect the company itself (or its assets) would have is on discount rate. You know, you discount the cash flows with different rates. :-))
If you still don't get I will try another way: it does not matter what company might have if it would never give it to stockholders or use it to generate more profit. It would have effect on risk premium (part of the discount rate)

"Many of the members in this thread are quite rude, not to mention not very well learned in finance."

Talking of yourself now, Regy. Don't be so hard on yourself. Knowledge of finance is not most important thing in the world. Well, in your case, it might be since you are a consultant in the area. he-he-he-he-he

you can try to value such a complicated company as AMD but ,please, don't make fool out of yourself that is don't post
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