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


To: tejek who wrote (94998)2/24/2000 2:59:00 PM
From: Epinephrine  Read Replies (1) | Respond to of 1574616
 
RE: <, 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. >

I have never gotten a dividend. I thought they were usually only pennies per share and were actually just a small cash enticement to own a given companies shares and provide just a little liquid income without necessitating the sale of any long term shareholdings. Do they really play into a stocks valuation that heavily? I would have thought that it would be much more desirable to own a company who might grow eps by 25-50% year over year (or even in a matter of quarters) than a company with stagnant eps growth that paid a small dividend. Do I have a mistaken interpretation?

Thanks again for your help.

Epinephrine



To: tejek who wrote (94998)2/24/2000 10:05:00 PM
From: Paul Engel  Read Replies (1) | Respond to of 1574616
 
Tejek - Re: "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. "

Congratulations !!

You are the 50,000 'th poster to state this "AMD Potential" concept in the past 4 1/2 years.

And your statement has been true - and remains true today - AMD DOES have more potential.

In fact - AMD may ALWAYS have more upside potential than Intel - as long as its profits remain intermittent at best - and LOW when there even are such profits.

Paul