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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?


To: milo_morai who wrote (149763)11/27/2001 1:47:26 AM
From: wanna_bmw  Read Replies (2) | Respond to of 186894
 
Milo, Re: "you just showed AMD's net asset % gain as 89% and INTC's at a low 53% over 3 years INTC's not worth a 55 P/E that has."

First, you have to put things in perspective. AMD's 89% gain represents a $1.8 billion increase in tangible assets. Intel's 53% gain represents a $12.5 billion increase in tangible assets.

And, if you are in the mood of playing with percentages, why don't we find out the ratio of Intel's and AMD's tangible assets to total assets. This will give us an idea of how much liability each company has relative to their assets. A number closer to one indicates a much healthier ratio.

Intel's 1999 ratio: 0.74
Intel's 2001 ratio: 0.81
AMD's 1999 ratio: 0.47
AMD's 2001 ratio: 0.65

Clearly, Intel is in a much better position, and although both companies have improved since 1999, AMD's debt is clearly weighing them down.

Of course, if these ratios don't fit your fancy, I can understand that. On the other hand, your obsession with P/E ratios would make any criticism a little confusing. After all, being at a loss means that AMD doesn't even have a P/E ratio. Tell me why their stock is worth anything.

wbmw