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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Tenchusatsu who wrote (278674)	3/6/2006 12:47:37 PM
From: AK2004	Read Replies (1) \| Respond to of 1572152

Ten re: You tell me which company is priced to exceed expectations Intel's PE is significantly lower, no doubt aboyt it. But you can not make the same statement about future expectations. P=sum[exp((yield - interest + growth - risk_premium)t)] you have to make an assumption of growth and risk. Risk_Premium is higher for AMD but so is growth rate. If amd's (growth - risk_premium) is higher than intel's (growth - risk_premium) then higher PE for AMD would be justified. re: Even Hector Ruiz promised to beat expectations by saying, "We like to underpromise and overachieve." Growth rate and risk_premium for an individual company is a matter of perception. Hector is trying to lower the perception of riskiness of AMD. just my 2c -AK ps I have recently bought into Intel so I am rooting for both companies