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

To: niceguy767 who wrote (22231)	12/11/2000 8:04:05 PM
From: kash johal	Read Replies (3) \| Respond to of 275872

Niceguy, There are many reasons for stock to be at $17. 1. Overall market is arguably on its last legs unless fed stokes things up. 2. The hi-techs have suffered badly, and especially PC centric. So the sector overall sucks. Just look at Intel MSFT the other major playa's. 3. AMD history. AMD has a history of screwing up. And one year of profits wont change that history. AMD has not had stellar sales, profits growth over a multi-year period in the last decade. This makes everybody sceptical on long term buys. They also have a history of lying and not being forthright when problems occur. There have been many shareholders suits over last few years. 4. Gorilla competition. AMD unfortunately is competing against a gorilla. And Intel is considered an incredible competitior. And their performance over last year, when they have had sub=par products is clear proof. What happens when Intel has better products than AMD? Most folks think AMD will be roadkill again at that time. This may be wrong analysis, but many folks do not want to invest in a company that might be crushed. This is rational thinking. It is almost impossible to get funded to compete against MSFT in general purpose operating systems as a case in point. Lots of people hate MSFT. But they would never buy an alternative due to desire to match a standard. ----------------------------------------------------------- These are some of the mix of reasons why Intel and AMD are simply not valued the same way on a simplistic PE ratio. These are some of the reasons major corporations are still reluctant to buy AMD. Now figure what happens when PIV moves to 0.13. You can at least understand why lots of folks have a very jaundiced view of AMD. regards, Kash