Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Tenchusatsu who wrote (107043)	4/20/2000 3:31:00 PM
From: Joe NYC	Respond to of 1573867

Tenchusatsu, I don't follow your math I did this very quickly, so feel free to correct any inaccuracies. The Other Income and gains amounted to $640 million. This is based on the fact that Intel is a combination of 2 companies - microprocessor and Venture Capital. Suppose you split Intel along those lines and give shares to shareholders in both. You end up with Venture Capital firm with $20 billion portfolio, which earned $640 million, or $.20 per Intel share. The $20 billion in cash and securities (plus any unrealized gains) has a value of (you guessed it) $20 billion (plus unrealized gains), or $6.50 per share. So now I want to evaluate the other portion - Intel core business, which earned $.71 - $.20 = $.51 per share per quarter. Or $2.04 per year. Multiply this by PE of 25 and you get a price of $51 per share. . You're saying most of Intel's profits are coming from its portfolio? So the huge 63% margins that Intel is getting on 30M CPUs only leads to 50 cents per share per quarter? I don't think so. Again, I was just trying to get to Tad's $60. I am not saying that Intel will head to $60. If I thought that, I would be shorting it or buying puts. Which part of my equation do you think is wrong? Joe