Actually, I don't have a business degree.
Now let's see. If Intel will earn $11 x 880 million shares that's about $9,000,000,000. They make that on, among other things, selling 50-60 million microprocessors. If Cyrix sells 4 million chips, they should begin to turn the corner on their earnings. 1/12 of 9,000,000,000 - minus 50% for less efficient fabs, and 25% for inefficiencies in being a smaller company with an overheard to write off. That may come to $200,000,000 profits. Divide that by 20,000,000 shares outstanding and you have $10 per share. Then reduce the profit by 50% for the lower selling price of the Cyrix chips and you have $5 per share. $5 per share x 20 pe = $100. I like that scenario much better. The main problem with posts on this thread is that many think that what was, is what will be.
I actually don't need either the speed or the cash. (I made too much on INTC and MSFT). And I do think CYRX is a risky investment, but one with much more upside potential, and possibly downside risk, than INTC. |
