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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: kapkan4u who wrote (61938)	6/16/1999 1:55:00 PM
From: Charles R	Respond to of 1573402

Kap, "A company with 0% growth and no dividends does not deserve a P/E of 30+. Even a hint at slow or no growth will send Intel's P/E into 15- territory. Which by the way is close to the historic average for INTC." I am generally in agreement with you here. One thing though - this bull market has put high valuations on a lot of companies, quite a few of them undeservedly. Also, we may have a different definition of "valuation time bomb". The only companies in the semi biz that fit that metric for me are the companies that are trading at PEs well over 50 (TXN, BRCM, RMBS, MU, PMCS, TXCC, AMCC come to mind). Not that PE over 50 is by itself bad but the penalty for a downturn in business is huge. Semiconductor companies have routinely lost 50% value or more in a year in the last 10-15 years, so a company losing 50% market cap in any given year is almost a non-event. Chuck

To: kapkan4u who wrote (61938)	6/16/1999 1:56:00 PM
From: kapkan4u	Read Replies (3) \| Respond to of 1573402

Here is some amusing reading from the REGISTER. theregister.co.uk AMD K7 yields to no-one, especially not Intel A couple of years ago, The Register was down Satan Clara way and bumped into the P7 engineers in a bar. They got tipsy and tipped us the wink on future Intel marchitectures. Now, it appears, AMD engineers enjoy a tipple or two, too. A source who got drinking in an Austin bar with some AMD engineers a few weeks ago gleaned some good info on K7 yields and process technology. He says the K7 will now be built on a .18 micron process, not .25 micron as previously thought. This matches Intel's intention to produce a 600MHz PIII using Coppermine .18 technology. Key parts of the K7 are etched at .12 micron and samples are already running at 1GHz in AMD labs. And AMD has ordered machinery for Dresden that will work at .10 micron. Further, production yields on the K7 are around 50 to 55 per cent, better than planned for this stage. ®