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

To: Cory Gault who wrote (94849)	2/23/2000 10:30:00 PM
From: Epinephrine	Read Replies (1) \| Respond to of 1575344

RE: <I crack up when I read these types of comparisons on this board. Wouldn't have anything to do with outstanding shares now would it? Hey, hmaly...what did CSCO earn per share last quarter...about half of what AMD did per share...> Cory, Please help me understand because I think I may be missing something (I am not being sarcastic) When you buy a stock, you buy a piece of the company right? So If a company has more shares outstanding then each share is more dilluted in regards to the actual company value and also more dilluted in regards to earnings and profit. So the fact that AMD has less shares outstanding is a huge positive isn't it? Doesn't that mean that when I buy a share of AMD I am buying a larger percentage of AMD the company than I would have bought of Intel had I bought a share of Intel's common stock. And since I own a larger percentage of equity in AMD then I also have a larger percentage of their earnings and profits? That's how I always looked at it. Can you explain to me why you think having more shares outstanding is a good thing. I thought that the fact that AMD had so relatively few shares outstanding at such a low price relative to other stocks higher priced more dilluted shares was one of the reasons AMDs stock was such a great value. What am I missing? Thanks, Epinephrine

To: Cory Gault who wrote (94849)	2/23/2000 10:53:00 PM
From: Epinephrine	Respond to of 1575344

RE: <...Outstanding shares...> Cory, I have been thinking it through and maybe it would help to not think of buying a share as buying a part of a company but rather of buying a share of the profits. So if CompanyA is trading for 50$ per share and CompanyB is trading for 100$ per share and they both make the same amount of profit in a given quarter then I can buy twice as much profit from CompanyA for the same amount of investment.(in other words I can buy twice as much money from CompanyA) I have convinced myself! if AMD makes 43cents per share and Dell makes less than 20cents per share, AMD is by definition a better investment for that quarter since I would have bought twice as much profit had I put my money into AMD. Of course that is only by definition and the real important issue is whether the stock price goes up but I don't think that you can say that the fact that Intel has so many more shares outstanding is a good thing. That is actually a very real negative. Thanks, Epineprine

To: Cory Gault who wrote (94849)	2/23/2000 11:32:00 PM
From: Paul Engel	Respond to of 1575344

Cory - Re: "LOL - I crack up when I read these types of comparisons on this board. Wouldn't have anything to do with outstanding shares now would it? Hey, hmaly...what did CSCO earn per share last quarter...about half of what AMD did per share...just think by your reasoning they are paying $98 more for -.22 in earnings compared to AMD. I hope you don't own any CSCO you could never sleep let alone weak knees. LOL" Did you ever read anything as dumb as that EPS remark by hmaly? Paul