Feeds

AMD takeover rumour rolls again

Yup, it's sheer speculation

  • alert
  • submit to reddit

Consider this. AMD share's price closed on Wall Street last night at $15.375.

Intel's share price closed on Wall Street last night at $33.3475.

According to information received, AMD operates on a P/E ratio of around five, INTC at a P/E ratio of around 22 and Trancemeta? Who knows.

One informed reader claims P/E is not five per cent, but closer to seven or eight. He says: "AMD doesn't trade at a P/E of 5.

"The company has enjoyed a net-operating-loss (NOL) that has boosted their earnings over the last year.

"Essentially - they paid no taxes until about a quarter or so ago. Most analysts models do include taxes for the year going forward, but I think they might be a little low (like 30-31 per cent versus 34-35 per cent).

"It may be picky, but the P/E is probably closer to 7-8... If you can believe the numbers for next year.. from a company that has already guided expectations down for the current quarter."

Pension fund managers have moved out of AMD stock over the last three or four weeks.

And AMD has a state-of-the-art fab in Dresden churning out fine fast microprocessors which is actually worth more than its current market capitalisation.

Surely that begs some questions, doesn't it? Answers on the back of a postcard to the usual address. These rumours, by the way, do the rounds from time to time. ®

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.