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. ®