Comment: Re:Stocks fall (Score 5, Informative) 2008-07-18 14:21
Attached to: AMD Loses $1.2 Billion and Its CEO
Remember, there is no way to properly value this company, the proper valuation is NEGATIVE because that's what profits are.
That's one of the dumber things I've heard today and it only holds true if you assume AMD is going to keep losing money until they have to sell off their desk chairs & keyboards in a bankruptcy auction.
There is a lot more to valuing a company than "omg they lost GigaBucks this quarter!!1"
The two basic numbers to work with are:
A) whatever investors think it's worth
B) what the company's assets and fundamentals represent
A lot of times A is less than B.
The attempted Microsoft buyout of Yahoo is a good recent example.
Yahoo shares were/are trading in the low $20s even though MS offered in the low $30s

