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

To: Epinephrine who wrote (94959)	2/24/2000 11:25:00 AM
From: Cory Gault	Read Replies (3) \| Respond to of 1574574

e: Based on your analysis there should be a whole bunch of food processing and basic materials stocks that would be a much better investments on a per sharte basis than AMD. The real basic philosophy you are expounding is somewhat accurate but not applicable when comparing typical high-tech growth stocks that have provided huge returns and many stock splits as a result over the years. In a strictly value analysis some of your points are accurate. However in todays market you can find all kinds of stocks with double digit growth rates and single-digit PE's. But if noone wants to own the stock.....nowhere to go but down. CG

To: Epinephrine who wrote (94959)	2/24/2000 2:39:00 PM
From: tejek	Read Replies (2) \| Respond to of 1574574

So if you had 110 dollars to invest, then given yesterdays closing prices, you could buy one share of Intel for a profit stake in the company of 63 cents or with the same money you could buy two shares of AMD (and have about 28 dollars left over) for a total profit stake in AMD of 86 cents. Epinephrine, that would make sense if the shareholder were actually getting the $.63 or $.43 per share, or whatever the company's EPS is. But the truth is that the shareholder is buying a piece of the company which, in turn, the shareholder hopes will generate profits. So while the profit per share is a number to look at and is important in calculating P/E, it doesn't add value to the shareholder's bottom line like a dividend would. And usually the bigger the total profits, the more valuable a company's shares. That is why for the time being Intel has the more expensive share. However, what makes AMD the more compelling buy right now is that it has more upside potential for a significant increase in revs and profits than Intel. Intel's growth has slowed dramatically during the past 2 years. Therefore in the next year I think its possible, should current growth trends remain in place, to see AMD's shares valued at the same level as Intel's; though Intel would still have the larger market cap. BTW I, too, have only been trading for 2 years...so the above is simply MHO. ted