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Technology Stocks : ATI Technologies in 1997 (T.ATY) -- Ignore unavailable to you. Want to Upgrade?

To: P Wright who wrote (3713)	7/8/1999 5:12:00 PM
From: Method	Read Replies (1) \| Respond to of 5927

If you start looking at the earnings after amortization they become meaningless. That cost is sunk and has no relevance on the future earnings power of the organization. Although it is important to disclose as all valuations have to be based on core earnings. As long as core earnings continue to grow faster than the P/E we have a winner.

To: P Wright who wrote (3713)	7/8/1999 9:49:00 PM
From: Marc	Read Replies (2) \| Respond to of 5927

P. Wright, i would Guess that Buffet don't use Canadian GAAP in is example If you use US GAAP earning last Quarter were 2 cents, and this quarter they are 16 cents, that's 700% growth, Buffet would loke it,so don't give me the "but a good company should be able to grow earnings even after making adjustments for acquisitions" I have been asking for more than a year now for someone to find me a company that has been growing faster than ATI. So just look at sequential growth of Lucent and Cisco who trade at PE of 100 i guess that if those were ATI numbers, ATI would trade at a PE of 4 or maybe 5. HISTORICAL QUARTERLY RESULTS 1996 1997 1998 1999 CISCO EARNINGS PER SHARE 1st Qtr OCT 0.063 0.058 0.105 0.155 2nd Qtr JAN 0.069 0.110 0.144 0.085 3rd Qtr APR 0.083 0.124 0.020 0.190 4th Qtr JUL 0.091 0.049 0.150 LUCENT 1st Qtr DEC 0.000 0.335 0.310 0.520 2nd Qtr MAR -0.040 0.025 0.010 0.160 3rd Qtr JUN 0.028 0.085 -0.090 4th Qtr SEP 0.108 -0.235 0.145 COKE ( one of Buffet favorite, if i remember) 1st Qtr MAR 0.280 0.390 0.340 0.300 2nd Qtr JUN 0.420 0.520 0.480 3rd Qtr SEP 0.380 0.400 0.360 4th Qtr DEC 0.300 0.330 0.240 It easy to say that good company should be able to grow with charge but why don't you give me an example. You can attack the company anyway you want but the thing is you won't be able to find one as consistent as ATI, even in the states. COMPANY COMPARISON TO THE COMPUTERS & OFFICE EQUIPMENT AND S&P 500 AGGREGATES ATY INDUSTRY % S&P 500 PROFITABILITY RATIOS: Net Profit Margin 12.66 9.05 139.8% 11.23 Return on Equity 38.05 26.56 143.3% 21.70 Interest Coverage 494.08 13.32 3,709.3% 8.36 VALUATION RATIOS: P/E Ratio 35.32 46.29 76.3% 36.94 Dividend Yield 0.00 0.26 0.0% 1.22 Price to Tangible Book 11.97 14.71 81.3% 11.60 Price to Book 10.12 14.35 70.5% 8.78 Price to Free Cash Flow 100.68 62.63 160.7% 43.56 FINANCIAL STRENGTH RATIOS: Current Ratio 2.12 1.97 108.0% 1.48 LT Debt to Equity 0.00 0.38 0.0% 0.86 Total Debt to Equity 0.00 0.61 0.2% 1.05 GROWTH STATISTICS: 3 Yr Rev Growth 47.61 26.04 182.8% 15.09 3 Yr EPS Growth 108.14 28.95 373.6% 15.52 3 Yr Div Growth NM 17.21 NM% 10.73 Reinvestment Rate 100.00 91.33 109.5% 70.73