Drew Peck Selling Quotations

Obviously, this company is having big problems. It's cash flow negative. They are now at the point where they are selling off pieces of their business to subsidize the remaining piece. All their eggs are in one basket.

Integrating graphics with the processor compromises performance of the graphics. The problem isn't that people aren't interested in the low-end PCs selling at $600, it's that people aren't interested in processors whose performance is compromised because the graphics is built in.

While the company has seen no negative trend in its bookings activity, the Nortel remarks suggest a downturn is inevitable, although probably not until the first quarter of 2001. Unfortunately, stocks selling at more than 100 times multiples don't fare well in the face of any negative trend.