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

To: Road Walker who wrote (123578)	9/7/2000 3:58:04 PM
From: niceguy767	Read Replies (1) \| Respond to of 1570844

John: "So you are happy with AMD's stock price?... Interesting, they will grow their revenue more than AMD's total revenue." Comments: I'm very happy to be purchasing at $33, a significant discount to any realistic valuation based upon any model that can be applied to any other semi... I would hope that a company with a market cap of 40 times AMD's would have greater absolute revenue growth...The point I'm making is that revenue growth rate, that is , the percentage increase in revenues, for semis, including Intel, will normally be less than p/e multiple...Case in point INTC's growth rate is 17% comapred to AMD's 50% plus and INTC's P/e multiple is about 40 (i.e in excess of 17% growth rate) compared to AMD's p/e multiple of 12 (vs. growth rate of 50% plus)...My conclusion based on these very basic and significant benchmarks is that a major price realignment between AMD and just about any other semi including Intel will occur over the next 6 months!!!

To: Road Walker who wrote (123578)	9/7/2000 4:51:25 PM
From: Alighieri	Read Replies (1) \| Respond to of 1570844

Actually earnings growth is more common for a valuation discussion. Actually it is based on both earnings and revenue, and often revenue growth weighs in more heavily as an indication of market share growth. Yet in the context of earnings alone, growth at AMD has been very handsome. Considering valuation, AMD again is the far better value, notwithstanding Wall Street's trappings. I mean, show me another high tech company with a PE in the teens (soon low teens), expanding revenue, positive earnings, guidance for more of the same, a great product, solid plans to stay competitive and a year+ of near flawless execution in a new product launch. Interesting, they will grow their revenue more than AMD's total revenue. And?? What's your point? At any rate, I like both stocks,... You sure seem partisan to me...I am too...but I admit it. And to be fair, it's fun to route for the underdog, plus I like this scrappy little company's David and Goliath match. Al