Thread: So now we know
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Old 05-24-03, 10:46 AM   #43
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Join Date: May 2003
Posts: 116

Originally posted by Slappi
Their P/E means nothing right now. It will come down substantially in the next 2 quarters. Their long term debt is also small .... I don't know what you are looking at to get that high number. You cannot even compare ATI to nVidia as a company. They may have a better product but as far as execution on their business ATI is lacking.
historically a p/e of 15 would be considered highish, so i don't know what you call 115 . Their long term debt combined with their liabilities is 2/3 of GROSS revenue that isn't good going down the road. There long term debt is 300 million but their income after taxes is 60 million. If you made $60,000 a year after tax and bought a $300,000 house I would say you are walking the razors edge. Not to mention the $600 million in liabilities that can come due at unpredictable times.

Can someone say irrational exuberance ? It's a good thing you don't get paid to give stock advice. I'm not saying they are going to roll over but they're are nearing the limit of capitol creation through financing and investment. Therefore they can't afford another screwup.
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