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Technology Stocks : Intel Corporation (INTC)
INTC 37.26-0.7%12:46 PM EST

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To: nihil who wrote (77263)3/25/1999 5:23:00 PM
From: GVTucker  Read Replies (1) of 186894
 
nihil, RE:<<The theory that earnings and earnings growth "explain" or "justify" P/E's and market cap's is pretty weird. There has to be something else, or stock in companies like AMD would be free! >>

That 'weird' concept only works for 'good' companies like Intel that actually make money. 'Bad' companies can better be valued by looking at book value (around 13½ in AMD's case). If the book value is real, the prospect of killing the company puts some kind of floor on the stock. And in the case of AMD, given the long term performance, shareholders would probably be better off just shooting and asking questions later, as you suggested a couple of days ago (although I would question the strategy of putting the proceeds in Intel today).
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