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

To: Windsock who wrote (63662)	11/14/2001 8:41:26 AM
From: combjelly	Read Replies (1) \| Respond to of 275872

"Intel is one of only three companies in the world who have shown a profit of $100 million per quarter continuously for the last 10 years." As they say, past performance is no guarantee of future returns...

To: Windsock who wrote (63662)	11/14/2001 11:11:56 AM
From: AK2004	Read Replies (1) \| Respond to of 275872

Windsock <edited> 8% is an extremely generous discount rate for tech company, I'll be kind. So let us calculate how much 400mil/year forever worth: simple perpetuity is $400/.08 = $5000mil now lets compare this 5bil to Intel's market cap If intel's market cap is below $5bil than it is probably under-priced <ggggg> <edited> you can argue that intel is a growing company but in that case you have to take into acount incentive plans and more realistic risk premium (discount rate). You may even end up with slightly higher number.