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


To: Tenchusatsu who wrote (56263)9/25/2001 8:19:04 AM
From: Road WalkerRead Replies (1) | Respond to of 275872
 
Ten,

WSJ reporting this morning Gateway Consolidates Component Purchases With Intel, Drops AMD.

Haven't seen anything else on the Internet yet.

John



To: Tenchusatsu who wrote (56263)9/25/2001 10:34:52 AM
From: Robert SalasidisRespond to of 275872
 
I would not be focusing on P/Es too much when we are at a cycle bottom.



To: Tenchusatsu who wrote (56263)9/25/2001 11:26:39 AM
From: PetzRead Replies (2) | Respond to of 275872
 
Tench, re:<how would you value a company with a negative P/E ratio?>

My rule of thumb is that for a company with good expectations of a return to black ink, the Price to Sales ratio should be between 1 and 3, depending on the growth prospects. I'll leave it to someone else to do the math on AMD, which BTW hasn't had a loss YET. ;-/

Petz



To: Tenchusatsu who wrote (56263)9/25/2001 11:43:52 AM
From: AK2004Respond to of 275872
 
Ten <edited>

I'll buy that, 20 is a reasonable pe for either of the companies, IMHO.

There is consideration should be given to risk exposure. For example, given equal growth rate and earnings amd probably deserve somewhat lower than intel pe due to higher risk.

On pure PV basis PE=1/(1-q) where q is a multiple for future earnings. q is less than 1 due to discount and risk premium.

Regards
-Albert