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

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.