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.

Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: niceguy767 who wrote (11368)	10/4/2000 12:48:16 PM
From: RDM	Read Replies (1) \| Respond to of 275872

<Just not so, imho...> <The perfect theory market model suggests that the current price reflects the discounted value of future earnings flow > This may true but it probably is too simple a theory as the future earnings flow can only be an estimate of the future earnings. There is likely a central value to the estimate and a distribution of estimates depending on how and by whom they done (an in what mood). I agree with you that when AMD was $48 the fundamentals appeared no better than today. Perhpas it would be be better to think of what is going on as not an irrational $24 today but as just the end of the distribution of values that may be appropriate for the stock (that is $36 +-$12).