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


To: Petz who wrote (155351)1/14/2002 5:43:57 PM
From: GVTucker  Respond to of 186894
 
John, RE: Even going back to 1996 (8 years from 1996 to 2003), the EPS back then were $1.70. (adjusted 4:1) The growth in earnings is still negative, so PE should be very low.

1996 split adjusted earnings for Intel were 73¢. $5.81/8 = .07263. (3 2 for 1 splits)

edit: To really split hairs, using fully diluted (and better) numbers, the split adjusted earnings would be $5.72/8 or 72¢.

So let's go for 11 years! In 1993, earnings were $5.20, but adjusted for splits, they were 0.65.

There have been 4 2 for 1 splits since then, so the adjustment factor would be 16. Split adjusted earnings for '93 were 33¢.

Yeah, a PE of 50 is probably unreasonable, but let's not give the bulls ammo for attack with inaccurate numbers.



To: Petz who wrote (155351)1/14/2002 5:56:40 PM
From: SilentZ  Read Replies (1) | Respond to of 186894
 
>Now do you understand why a PE of 50 for Intel is unreasonable?

Nope. Considering that most semi companies have been in the red recently, P/E (not PE, he can be pretty cool) is pretty useless. Wait until other companies get back in the black and then start doing some comparisons- Is a company like AMD or MU worthless at this point? Of course not.

-Z



To: Petz who wrote (155351)1/14/2002 6:59:33 PM
From: Tony Viola  Respond to of 186894
 
John, Re: "PE=growth rate is a good rule of thumb, but the growth rate has to be based on a much longer time period than two years."

Funny you should say that because right now AMD is going up ostensibly because of one or two quarters looking better than they were.

Tony