Thursday, January 26, 2006

AMD stock is under valued

Reporting $194.8 million profit or 50 cents per diluted share, Broadcom Corp (BRCM) went up 24.49% after hours to $73.10, leading to a market cap of $25 billion. Based on after hour price, BRCM's forward P/E is 73.1/1.74 = 42 .

AMD reported a 4Q04 profit of $206 million, AMD market cap is only $16.3 billion. AMD's forward P/E is 23.

2 Comments:

Anonymous Anonymous said...

U got that right man!

Look for another $2 bump tomorrow. AMD is going to 45-50 minimum!

5:14 PM, January 26, 2006  
Anonymous Anonymous said...

AMD is quality, but it's floating way above it's 20 MDA, so beware of money manager and hedge funds selling short. Long term, it's going positive. It could go south (like it did today). Agreed, that you can "take comfort" in a P/E, but not everyone uses that measurement for why they purchase stocks.

Take a look at Apples quick drop form 86 to 71. Some would say on "no news"

12:34 AM, January 28, 2006  

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