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

To: Reginald Middleton who wrote (28534)	2/19/1998 11:59:00 PM
From: Jefferson Prescott Dewhurst	Read Replies (1) \| Respond to of 1572139

Reginald, My apologies, I should be more diplomatic and tactful. <<Assets are not sold by book value, they are sold according to market value which equates to the ability of those assets to produce future cash flows. Therefore the book value of the fab is meaningless unless you are selling to an accouning firm.>> The book value of a fab is quite meaningful to a potential aquirer which would certainly not be an accounting firm. That value would be equal to or greater than the replacement value. Whenever any particular company is not generating current earnings or positive cash flow the valuation of that company gravitates toward the value of the assets. The market value of AMD's assets at this point in time is somewhere in the area of $19/Sh. With respect to risk, with the stock selling at close to book value the risk to investors at this point is minimal while the upside potential is quite large. The risk increases as the company is valued at higher multiples of projected earnings which may or may not materialize. Dewy.