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

To: Reginald Middleton who wrote (28590)	2/20/1998 8:52:00 PM
From: Jefferson Prescott Dewhurst	Read Replies (1) \| Respond to of 1572630

Reginald, You keep making my points for me this is a delightful discussion! <<Without a single significant change in actual assets and market conditions, NSCP's share price was halved in a matter of months.>> Exactly. NSCP's share price was not based on any tangible hard assets but on a multiple of estimated future earnings and as such was a very high risk investment. As it turned out the earnings estimates never materialized and the stock price gravitated toward asset value which in the case of netscape is intellectual property and the value of such to a potential aquiring entity. <<The only to prove the company's assets are worth $19 a share is to have a entity purchase the assets in thier entirety at $19 per share>> This is exactly what the happens every day as entities(individuals & institutions) purchase AMD's assets @$19/sh. Dewy.

To: Reginald Middleton who wrote (28590)	2/20/1998 9:21:00 PM
From: Kevin K. Spurway	Respond to of 1572630

Re: "An good example is the $700 million INTC acquisistion." I wouldn't place too much stock in the informational value of this so-called "acquisition". It was but one element of a complex, negotiated settlement involving chip discounts over time, technology transfers, etc. Attempting to guesstimate the market value of Fab 25 based on the Intel-DEC transaction would be an exercise in futility, even if one were to (inaccurately) assume the DEC facility is equivalent to Fab 25. Kevin