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

To: Lizzie Tudor who wrote (54570)	11/2/2003 6:58:33 PM
From: Stock Farmer	Respond to of 54805

My feeling is the real issue for any of these companies be it intel, cisco or whoever is growth Hi Lizzie, good point. I'd add only however it's growth relative to the growth already built into the price. A company priced to increase profits by 400% and growing by 28% is poised to pass break even seven years from now. And that's a lot of 28% growth for these mega-cap companies.

To: Lizzie Tudor who wrote (54570)	11/2/2003 10:56:21 PM
From: hueyone	Respond to of 54805

Have you looked at options at AMD, how do they hold up (with respect to options?) Here are some AMD results to take in to account options expense for years 1999 through 2002. When the 3rd QTR 10Q comes out, I will give you three more quarters if you are interested. Numbers are in 1000s. The headings are GAAP Earnings, GAAP Earnings adjusted for stock option expense and S&P Core Earnings. YearEnd GAAP GAAP w/OP Exp S&P Core Earnings 99 (88,936) (122,497) NA 00 983,026 830,495 NA 01 (60,581) (178,918) (161,000) 02 (1,303,012) (1,449,948) (1,449,948) PER SHARE DATA 99 (0.30) (0.42) NA 00 2.89 2.37 NA 01 (0.18) (0.54) (0.49) 02 (3.81) (4.24) (4.24) Here are Intel's numbers to take stock option expense in to account for the same years, 1999 through 2002. Absolute Earnings Numbers (Millions): GAAP w/ S&P Fiscal Year GAAP Op Exp Core Earnings 12/31/99 7,314 M 6,860 M N/A 12/31/00 10,535 M 9,699 M N/A 12/31/01 1,291 M 254 M 740 M 12/31/02 3,117 M 1,947 M 2,329 M PER SHARE DATA GAAP w/ S&P Fiscal Year GAAP EPS Op Exp Core EPS 12/31/99 $1.05 $0.99 N/A 12/31/00 $1.51 $1.40 N/A 12/31/01 $0.19 $0.04 .11 12/31/02 $0.46 $0.29 .35 Note: The GAAP Earnings with stock option expense are taken from the 10ks, and are based on valuing stock options at date of grant and amortizing this expense over the vesting periods. Standard and Poor's Core Earnings figures include stock option expense and often other adjustments to the GAAP figure as well. Here is a further explanation for Core Earnings: www2.standardandpoors.com. Regards, Huey