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

To: tejek who wrote (123031)	8/24/2000 2:52:31 PM
From: Petz	Read Replies (2) \| Respond to of 1580270

ted, just to interject on two things in your dispute with chic about INTC and CSCO earnings: [INTEL] What are those factors that have convinced you that they will not continue to make the same gains going forward? On July 1, 2000, Intel had $4.6B of unrealized gains in their portfolio. That amounts to $0.66 per share of potential future earnings from sale of investments. If you think that number will go up, think again. On April 1 they had $7.8B of unrealized gains, they "took" $2.1B of gains to their bottom line in Q2, but an additional $1.1B of gains just went "poof." (7.8-4.6-2.1 = 1.1) Basically, they liquidated a quarter of their portfolio and lost another 10% from market declines so their portfolio value dropped from $9.8B to $6.2B in 3 months. [CSCO] Yes, I said their margins had slipped quarter to quarter. They are still good margins, so what's your point? Much better than AMD's btw. They are much worse margins than AMD. AMD operating earnings before tax = 21.4% of revenues AMD operating earnings after tax = 17.7% of revenues CSCO operating earnings (taxes?) = 14.4% of revenues What's your point?! Any investor who ignores a huge decline in margins when sales are rising is myopic. CSCO is selling at 142 time annualized operating earnings. Get out of it while you can. Petz