Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Joey Smith who wrote (33094)	6/2/1998 1:59:00 PM
From: TGPTNDR	Respond to of 1571935

Celeron chips selling for as low as $75.00 -- io Taiwnese PC makers -- Per Barrons June 1n edition, Page 65, col. 3, last paragraph. Anyone have a thought on marginal cost of production on these chips? Same paragraph -- Intel has been selling the same PC makers its new graphics chips at $7-$8 each rather than the expected $30. Two paragraphs later -- Once pricing settles down, which Peck expects to happen with the arrival of the Merced -- he thinks Intel can produce annual revenue growth ... of 13-18 %. From the news Friday, it sounds like there is about a 75% slippage rate on that project! TGPTNDR

To: Joey Smith who wrote (33094)	6/5/1998 8:37:00 AM
From: Reginald Middleton	Read Replies (1) \| Respond to of 1571935

While AMD is meeting/exceeding X86 microprocessor targets, flash memory, programmable logic devices (PLD), and networking appearto be falling short of target. As a result, we now project 2Q98 EPS at $-0.28 (old: $-0.25), 1998 at $-0.50 (old:$-0.39), 1999 at $1.45 (old: $1.50) and 2000 unchanged. " From a historical perspective, the market does not respect the earnings of AMD. Earnings are not the most predctive measure of shareholder value anyway, but the market also discounts the value of AMD's gross cash flow, the reigning shareholder value proxy. For the last 40 quarters, AMD's fully diluted earnings per share correlated with its market value 7.26%, while its book value has a correlation to market value of 70.23%. I interpret this as the market discounting the ability of the future earnigs power of mgmt., and valuing AMD more on its traditional assets. Regardless of the validity of this assumption, it appears obvious from a 10 year historical perspective that earnings are far from what drives AMD share price.