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Strategies & Market Trends : Roger's 1998 Short Picks

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To: cellhigh who wrote (7323)4/19/1998 4:45:00 PM
From: Don Westermeyer  Read Replies (1) of 18691
 
Ron,

I'm actually a pretty big fan of AMD's processors (much better than Cyrix), but I find it very unlikely that the market will assign a P/E much higher than 15 for any chip maker for very long (assuming they actually ever make money). That would give a price of about $20 in 18 months based upon analysts expectations. I'd say at best AMD is dead money if held long. I noticed AMD just recently got their debt ratings cut, another big negative.

Of course AMD has 18 holds and 4 strong buys, so from an analyst's view it has no place to go besides up.
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