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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (73519)	1/13/2000 9:22:00 PM
From: Lucretius	Respond to of 132070

lol

To: Skeeter Bug who wrote (73519)	1/14/2000 4:33:00 AM
From: Richard Nehrboss	Read Replies (2) \| Respond to of 132070

Skeeter, Looks like your tbill analysis doesn't take into account the terminal value of the security. That is, you must discount the continued cash flows after the ten years back to the present. Even though the average investor won't realize those continued cash flows, the stock will have a higher value due to them. Using a discounted cash flow analysis (two stage) with INTC growing at only 19% over the next 10 years, discounting with an 11% rate (very arguable... new era's suggest 7% (NOT) and conventional wisdom 15%. Probably 13% is reasonable, but anyway... using 11% INTC implied value $154. Using a discount of 15% INTCs worth $98. Anyway, there's some discussion material. Richard