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Technology Stocks : Transmeta (TMTA)-The Monster That Could Slay Intel -- Ignore unavailable to you. Want to Upgrade?

To: John Curtis who wrote (175)	10/2/2000 3:00:02 PM
From: Bill Fischofer	Read Replies (1) \| Respond to of 421

Re: TMTA IPO My guess is that 11-13 range will get bumped up at least once since this will doubtless be a hot one. However, with 126 million post-IPO shares outstanding TMTA is sure to be very richly valued. Consider that AMD with nearly $4 billion in annual sales sports a market cap of less than $8 billion for a price-to-sales ratio of less than 2. INTC, by contrast weighs in at a P/S of just over 9. The real question isn't about TMTA's technology, which seems great, but how well they can compete in the real world of microprocessor trench warfare. In many ways TMTA is in a race against time. Code morphing is a clever way to preserve instruction set compatibility at a time when application shifts toward XML, Java, and other net-centric programming technologies are making processor instruction sets less important going forward. The key to TMTA's success is how well they can leverage their compatibility advantage in bootstraping themselves into new markets where AMD and INTC will have difficulty following.