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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Donald Wennerstrom who wrote (77224)	9/28/2017 4:37:39 PM
From: Donald Wennerstrom	3 Recommendations Recommended By FJB Sam The Ox Read Replies (2) \| Respond to of 95587

Just to follow up on the last post an earnings estimate table for NVDA is shown. The market is willing to pay 175.68 today to obtain 4.95 of earnings for Calendar Year 2020 because it has "wonderful" growth qualities. The market is willing to pay 38.00 a share today for Micron, earning 7.56 a share for this fiscal year ending next Aug 2018.

To: Donald Wennerstrom who wrote (77224)	9/28/2017 5:46:47 PM
From: The Ox	1 Recommendation Recommended By Donald Wennerstrom Respond to of 95587

Hi Don, No, I'm betting we don't disagree about how to put different valuation metrics on a company. I singled out PE, as that is where much of the discussion about MU has been focused in the past (on this thread). Price to sales, Discounted cash flows and plenty of other valuation metrics can (and should) be used. I wrote the note in a bit of a hurry and it would have been wiser to slow down and add more details like those above. Especially since the CS data was putting a valuation based on EV/FCF and also using EPS/FCF. For MU, Total Cash Flow From Operating Activities fell to $3,168,000 in 2016 from $5,208,000 the year before. Combined with the minuscule EPS last year, it was not a very good situation. The turnaround has been dramatic and substantially justifies the increased share price.