ATI Technologies in 1997 (T.ATY) Message Board

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Technology Stocks : ATI Technologies in 1997 (T.ATY)

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To: Don Beals who wrote (2592)	1/29/1999 4:03:00 PM
From: Sleeperz	Read Replies (3) of 5927

Hey, Hey. That's my line. Barriers to entry in the graphics market or set top box. NOt many companies are a dime a dozen. No one dies if the drivers are bad or the monitor image is flaky. Companies can pick and chose to a certain degree what they implement in their graphics chips. Usual Price Sales of companies in the graphics industries, SIII, TDFX, TRID, ~ 1. Price/Sales ATI? Sales ~ $1.2 Billion Shares Outstanding ~200 Million Sales/share = $6/share Price/Sales = $26 / 6 = 4.3333 Thus ATI is receiving a premium mulitple of 4 times compared to others in the graphics industry in part due to ATI's sneaky management. That is about fair value, IMO. It is also more than half of Intels P/S of 9. Don't forget the unquantifiable effect of ATI's sneaky management on the share price.

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