Khris - Re:". Why does a co. like say, Disney or
McDonald's, trade at multiples greater than INTC?..."
My opinion -
Wall Street Mavens eat at McDonald's, consume their hamburgers, drink Cokes, Pepsi, etc. They have been doing this for over 30 years or more.
They can look and see hamburgers being made. They understand that their kids clamor for their "Dad" to take them to McDonalds so they can get the new Disney toys being given away.
Essentially, they touch, feel, drink, eat and see these products.
Intel, on the other hand, is a company headed by Ph.Ds, making magical chips in ultra-sophisticated fabs that they NEVER see, and couldn't comprehend if they did see them. This high tech stuff is "new" and foreign to them, so they don't "trust it" very much. They equate this with "Rocket Science".
Can you imagine a Wall Street guru contemplating an IC with 5 million transistors? H*ll, the only 5 million these guys understand are their commi$$ion$ on a hot Merger and Acquistion project.
They may have PCs on their desk - but Intel is inside, and they don't "see" this chip or touch it on a daily basis.
Now, this may change in a few years when their Kids clamor for their Dad to buy them the new Intel/Merced PCs being sold at their local electronics store.
Better yet, maybe Intel should have McDonald's give away some cheap PCs (Intel Inside, of course) with their "Happy Meals".
Paul |
