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

To: Petz who wrote (12409)	10/9/2000 8:12:50 PM
From: andreas_wonisch	Read Replies (1) \| Respond to of 275872

Petz, Re: you might want to check and see if it has EVER traded at less than 35 times its most recent quarterly earnings. AMD had a P/E of 2 (yes: two) in the 90s when it was obvious that they wouldn't have a viable alternative to the Pentium. I hope we don't run in this kind of situation again... I saw a chart with AMDs P/E over the year's posted some weeks ago and can dig it up for you if you want. Edit: Sorry, I messed it up. Actually the P/E was 3 (this is 50% more <g>) and it was due to the fact that AMD couldn't sell it 486er clones at that time because of one of the countless Intel law suit (as we all know, AMD won in the end). Andreas

To: Petz who wrote (12409)	10/9/2000 9:10:59 PM
From: chic_hearne	Read Replies (2) \| Respond to of 275872

Re: chic, before you assume that AMD will continue to decline, you might want to check and see if it has EVER traded at less than 35 times its most recent quarterly earnings. John, Like I said, P/e's didn't matter on the way up so I don't think they'll matter on the way down. Ultimately, AMD may have to pay a dividend to stop it's price from going down. Once the dividend hits the 7-10% range, people will support the price if they believe the dividends can be re-occuring. This is the worst case scenario and at this moment does not seem likely to me. Does this mean I'm sticking my head in the sand and watching AMD whither away my gains? Enough is enough. I'm long puts and calls. I'm **VERY interested to know if good earnings get SOLD or BOUGHT** this earnings season. YHOO could really mess things up, so could MOT. AMD could be at $40 in a week, it could be below $10. We'll see if "good" earnings mean anything in a few days. I'm not getting caught in no sucker bounce either. One thing to consider. The inventory may be large due to bad infrastructure. If the talking heads decide to make this an issue even if AMD earns $1 a share, they'll have us below $10 by Friday. chic