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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Mark Marcellus who wrote (3248)	9/25/2002 9:36:47 AM
From: Kirk ©	Read Replies (2) \| Respond to of 25522

Maybe this should be "Reading Comprehension 101?" I was not disputing that "companies with lower capital requirements deserve to trade for a higher P/B multiple than companies with higher capital requirements." My question was "how do you value them?" or "What formula do you use"? How do you put a "fair value" on MSFT? Do you expect to get money from them in a form of a dividend or will they continue to hold a pile of cash that might be better invested elsewhere? Some used to say that if a company has a large pile of cash, then it means it doesn't know how to invest it to grow the business so it should be given back to shareholders. How do YOU value that in your formula? for the record, I hold MSFT and am wondering about this. Maybe I'd rather have the cash in my pocket than in their treasury if they are not growing? Kirk