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

To: tejek who wrote (115056)	6/9/2000 1:23:00 PM
From: Petz	Respond to of 1572383

ted, kash & others, re:taxes. My take on Y2.001K eps being less than Y2K eps and/or Q3<Q2, because of taxes is ... this is a non-issue and I doubt it has affected the price despite the circumstantial evidence to the contrary. The big buyers and sellers base their decisions on profit/loss before taxes. Equivalently they base their valuation models on gross margin and sales. How many times have you seen a stock get hammered after the analysts figure out that a 5% profit gain came entirely from a lower tax rate? Many small investors look at the lagging PE in the newspaper, and this number will go from 60 to 40 (approx.) with the next earnings release. (The only reason AMD has a positive PE now is because the newspaper includes the gain from Vantis in their Q2'99 numbers, making it a profitable quarter (53 cents) although it was really AMD's worst quarter in history.) The fact that Q2 or Q3 earnings will be taxed means that the "lower earnings 2001" problem will go away anyway. And I don't think it will happen because Y2K estimates get reduced -- Y2.001K earnings estimates will be raised when analysts see that AMD can meet their Y2K estimates even with 33% taxation of Q3 and Q4 profits. BTW ;^), did anyone on the thread work on the Y1.9K adding machine bug? Petz