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

To: quasar_1 who wrote (18095)	11/7/2000 4:23:26 PM
From: tejek	Read Replies (2) \| Respond to of 275872

AMD's valuation is very out of line. I think so also. But I thought that about KLIC before it took it's latest drubbing. Then—'poof'—the earnings 'guidance' shows up and it goes even lower. I think with KLIC, the equip. maker business is slowing but I also think there are things company specific.....so that warning twice in two months has caused a loss of credibility for the company. Fortunately we don't have that problem with AMD. Who knows what is in this price? At this point the stock in the low 20's is suggesting flat (to down) earnings for the next year. While this seems implausible, one never knows what lies ahead. I think that's the crux of the problem....next year's EPS projections are flat or down slightly....not an encouraging sign for would be investors. I am hoping that AMD's conference this week will help mitigate the problem and encourage analysts to raise their estimates. However I am concerned that they (the analysts) will not believe AMD not because AMD has lost credibility but because the analysts think the sleeping giant aka Intel is stirring and AMD doesn't stand a chance. If that's true, then IMO the only way for that to change is for AMD to put out a great performance quarter after quarter for several more quarters. ted