Intel Corp (INTC)

[COMMON SENSE]

Old fashioned - am I ? ? ?

you say: "INTC is trading at 47 times earnings. I say so what?"

So what? So everything.

The P/E ratio is an accurate barometer of the value of a company and the price of the ownership.

If you want to pay twice as much as something is worth on the supposition that it will become that value - so be it.

Most serious investors will set a price and pay whatever it is worth. Not much more.

For the most part a stock that is overpriced will go down until fairly priced.


Now why doesn't Microsoft trade at twice the price. After all it is 25 times earnings and definitely going to be around for many decades? Misrosoft certainly owns the market and will command a monopoly for decades until they screw up. and $47 billion in the bank and $8 billion more each year!

Microsift trades at 25 times earnings because whenever it gets higher there are traders that sell their position and resort to waiting for a lower price.

Four five years this patter of $60 (now $30) stock has been stuck in a RUT. iT MEANDERS FROM THE NEAR $20'S TO THE UPPER $20'S. nO MORE.

Are all these investors in Microsoft fools????

Or do they balance people like you out and cancel your exhubrance?????