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

To: Tenchusatsu who wrote (60058)	10/24/2001 6:53:36 PM
From: AK2004	Read Replies (1) \| Respond to of 275872

Ten <edited> re: Stock prices are based on common expectation. Last time I checked, AMD's stock price is below book. What does that tell you about "common expectation"? if that would be true then we would not have two different optimization goals - one for share value and one for company value, they would be the same, would not they? Present value of distributable earnings with some adjustment for risk is very often used as a proxy for company value and gaap earnings (or return on equity) are used to optimize share price. Regards -Albert ps as you can see optimizing for gaap earnings is not the same as optimizing for overall value