AMD - What is wrong
We discussed AMD at our last monthly meeting and I was very against it. I had heard rumors of a major cash problem at AMD.
Not long ago, Intel was running scared of AMD and now AMD is nearing disaster. What happened?
Three things, really:
1. Victims of their own Success: In beating Intel, AMD woke the sleeping giant. Intel slashed prices and AMD had to follow suit. This led to less cash
2. Purchase of ATI - Buying this graphics chip company was probably a savvy move, but it cost money. Meanwhile, th ebenefits are still a ways off.
3. Flash memory prices dropped
In other words, AMD is losing money. Their last quarter had negative earnings. Their cash position is: $3.8B debt and $1.5B cash. They sold $5.8B last year, but that figure will drop (due to price drops in their product lines).
AMD is not going away, but they are in a crisis mode. Watch them continue to crash and then become worth buying.
Not long ago, Intel was running scared of AMD and now AMD is nearing disaster. What happened?
Three things, really:
1. Victims of their own Success: In beating Intel, AMD woke the sleeping giant. Intel slashed prices and AMD had to follow suit. This led to less cash
2. Purchase of ATI - Buying this graphics chip company was probably a savvy move, but it cost money. Meanwhile, th ebenefits are still a ways off.
3. Flash memory prices dropped
In other words, AMD is losing money. Their last quarter had negative earnings. Their cash position is: $3.8B debt and $1.5B cash. They sold $5.8B last year, but that figure will drop (due to price drops in their product lines).
AMD is not going away, but they are in a crisis mode. Watch them continue to crash and then become worth buying.
posted by Andrew at
8:20 AM
1 Comments:
whats your target price for AMD ? I am thinking of getting Jan 08 calls for 15$.. look cheap at this price.
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