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

To: GVTucker who wrote (171676)	10/21/2002 1:40:01 PM
From: Jorj X Mckie	Read Replies (2) \| Respond to of 186894

comparing a stock and a bond in that manner doesn't work. Sure it does, I was talking about the best place to park one's money. In an investment decision you have to decide where the best return will be for the acceptable amount of risk. And as part of the assumption, I stated that I was buying the whole company for the current market cap of $96B. Therefore the stock price is now constant as I own all of it. Now that I own the whole company, I am relying on earnings alone to get a return on investment and not the ability to sell a piece of paper at a higher price. The point of the exercise was to use the assumption of absurd growth to show that at the current market price, the stock is still overvalued. If you were buying a small business, wouldn't you weigh whether or not you could get better returns by just putting the money in bonds? I also assumed a constand low rate of return on the money.