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.

Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: BWAC who wrote (4687)	8/6/2002 1:33:21 PM
From: Kirk ©	Respond to of 95530

<IF an appartment building is generating 15x more cash after 10 years, is it worth 15x more?> Yup to all your questions... in that they all need to be looked at. I said "cash" not "revenue". Appartments often sell for about 10x annual revenue. Some break even... some generate cash after awhile and provide a nice retirement income to people that own them. I try to look at ALL investments as a comparison to buying a bond or buying an appartment building including the risk of default for the bond and the risk of a tenant destroying the place or an earthquake. But an apartment building that reinvests its cash and expands into more apartment buildings, while still holding significant portions of the cash generated might well be worth 15 times more. AMAT had about 15x more cash in that 10 yr period and I KNOW their R&D expense was way up so I think they have beeninvesting in new buildings while still pulling out significant amounts of cash to "hold" in reserve. Kirk