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Advanced Micro Devices, Inc. Message Board

  • ciber_zhan ciber_zhan Mar 24, 2007 2:01 PM Flag

    simple math

    Market cap Estimated Revenue
    INTC 111.13B 7.49B
    AMD 7.49B 1.56B
    From the above table, you can see that the market cap of AMD is badly unreasonable comparing to the estimated revenue of both companies this qtr. The reasonable market cap of AMD would be around 19B, which means that the price of AMD stock should be up 100% at least.
    Any comments? be careful! MMs are playing a big trick.

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    • i normally dont post but when i read something so stupid like what you wrote, i cant help but say, you, my friend are an talk about revenues and market cap but you seem to ignore capital structure, margins i.e. gross, EBITDA, net profit margins, its one thing to sell something and another thing to sell it for a profit...on the business side of things, you seem to have forgotten about market position, brand awareness, product development etc. if finding a winning stock was so easy as to find a mismatch between revs and market cap among two comapable companies, everyone would be rich. get the point?

    • nice figures !!!

      but what about the little fact that amd is losing money.

      what about the stock being down 60% because things have changed.

      amd is gambling on their next chips bringing them back ...but its different now with all that debt.

      honestly I think amd has maybe a 30% chance of getting out of this ....ati looks like a fatal error.

    • You are right, but you forgot cash and debt positions

    • It's a bit too simple math.

      Just imagine that there is a big bad dude (the one who
      loaned money to AMD, AKA bank) and this dude kind of owns most of AMD assets (used to secure the loan) That will do it to the stock price...

      Intel does not have this problem.

      Hope this simple explanation helps.

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