Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Thomas Mercer-Hursh who wrote (51893)	7/7/2002 9:54:22 AM
From: Seeker of Truth	Respond to of 54805

In the last year, according to Yahoo, INTC has made 25 cents a share. Let's assume that in 2 years that will double to 50 cents a share and after that everything will be back to normal, with an annual growth rate of 15%. That means that ten years from now the earnings will be $1.53 a share. Then assuming a P/E of 20, the stock price will be 30.60. Buying at 17 gives us a below normal growth of capital. If the main frame really dies and INTC chips are used at all levels of computing, the growth rate should be faster than 15%. If they do well in communication circuits, again the grow rate should be faster than 15%. It's just plain impossible to predict. The conclusion? The stock is a speculation at current prices.