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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lee who wrote (193)	2/14/2000 6:23:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 30051

Steve, just as I recommend not falling in love with a stock, I also recommend not falling in hate, you are in a "hate" relationship with AMD. If you look at it rationally, they are a much better company than NSM, for instance, but look at their relative valuation. AMD could have sales of $4 Billion plus, but their valuation is barely north of 1.5 this, while INTC, rightfully so commands a PSR in excess of 10. Sure INTC is a better company and has much more R&D and capacity to bring to bear, but AMD has shed a bunch of operations (some quite profitable one, I would say) to concentrate on being a viable competitor to INTC, it is not impossible, IMHO, for them to capture 25% of the CPU market, that means they'll be quite profitable (very profitable on those chips they sell at $800 a throw, their cost, I bet is not even $75 on those chips). As I said before, if it penetrates the high in the $45 to $46 area conclusively, it could roar just as RMBS roared today. Zeev