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

To: orkrious who wrote (5041)	1/19/2003 10:23:47 PM
From: Sarmad Y. Hermiz	Read Replies (2) \| Respond to of 25522

>> you have to look at the balance sheet to see what's really happening. take INTC for example. << Intel - according to the balance sheet - increased shareholder equity by $15B from '98 thru '02. So that's an average of $3B/yr in a period that includes good years and bad. They also repurchased approx 500m shares. At current prices that's worth another $8B or $9B. In a good year, Intel makes $8B. In a bad year, they still make a few $billions, but they also strengthen their competitive and financial position. So my bet is that in the next few years Intel will exceed their best year so far. Maybe make $12B of profit. By that time they would have added another $10B or $15B to their assets. In 2006 book value might be $8/share. Earnings might be $2/share. What should share price be then ? $30/sh ? What's the down side ? Maybe the US economy will go to crap. I just don't have the proper mental attitude for pessimistic bets. Good luck in your shorts. You rule the day for now.