The three that are most attractive Applied Materials, KLA-Tencor and Intel are so cheap that they are trading at discounts to the capitalizedvalue of their current EVA. That is, all are priced as though their future EVA is headed south.
When they do, the profits are recorded on their financial statements here, and the future cash flow from those investments is capitalized into their value on our stock market.
In a recent conference call Michael Campbell, Regal's chief executive, justified the dividends as "the most efficient means of distributing value, " adding that his balance sheet remained prudently capitalized.