AMD and Moody Bottom Rung List

[hragarand]

Any concerns here

Here is a listing of some tech stocks from Moody's "bottom rung." The bottom rung from Moodys are the companies most likely to default on their debt obligations coming due this year.

http://www.bloggingstocks.com/2009/03/11/what-is-moodys-bottom-rung/

 

[hragarand]

Any concerns here

Here is a listing of some tech stocks from Moody's "bottom rung." The bottom rung from Moodys are the companies most likely to default on their debt obligations coming due this year.

http://www.bloggingstocks.com/2009/03/11/what-is-moodys-bottom-rung/

Actually looks like AMD made a move since the list come out Tuesday. Hope they get through the tough year.

 

[enigma067]

AMD is going to pull through just fine. They own the mid and low end right now and in the upper end still have the platform price advantage.
ATI is taking graphics market share from Nvidia every day, not to mention AMD chipsets are the king platform for AMD processors right now, almost nobody is buying nvidia chipsets for AMD cpu's anymore and that wont change anytime soon.

That's right,

AMD ships 50 million GPUs for Nintendo Wii

Graphics card and CPU chipmaker AMD announced on Wednesday that it has shipped 50 million of its GPUs, nicknamed Hollywood, for the Nintendo Wii gaming console. The milestone means Hollywood is the most popular AMD graphics processor for gaming consoles. AMD has a 10-year history of supplying Nintendo with graphics processors, as it provided the Nintendo GameCube system, the Wii's predecessor, with a graphics processing solution.


More at:

http://www.electronista.com/articles/09/03/11/nintendo.ships.50m.wiis/

I have a Wii for my 46" Samsung.

 

[yomamafor1]

And AMD has been operating in the red, and is still operating in the red, with billions in debt.

Its clear that the profit of 50M GPUs cannot cover the cost of R&D and operation cost. But I do think AMD will likely make it until Bulldozer, providing that they don't screw anything up anymore.

 

[Outlander_04]

AMD have just recieved billions in refinancing by spinning off the manufacturing plants to what are essentially private investors .
Clever move

I bet GM wish they had enough potential for investors to be interested

 

[fazers_on_stun]

Actually I believe AMD received something like $800M total investment from Abu Dhabi as part of the Global Foundry spinoff deal, plus ATIC relieved AMD of something like 1.1B of the ATI purchase debt, which was 5.4B IIRC.

There is an interesting article on MSN Money Red flags that can warn of shaky books that explains how to spot shaky companies when it comes to investing.

These days, investors have plenty of reasons not to trust Wall Street. So it's good to know that you can learn a lot about the quality of management by taking a quick look at the books.

Many market pros consider clean and straightforward accounting a hallmark of good management. For them, repeated nonrecurring and extraordinary charges are red flags that can signal questionable accounting practices -- warning signs that should be checked out.

Looking at AMD's financial statements for the last 5 years, it's interesting to note that after-tax income, they lost 136M in 2006 (after Conroe was introduced and started killing K8 sales), 2.83B in 2007 and 2.41B in 2008 (total of $5.38 billions in losses in the last 3 years). BTW, for 2004-2005, AMD made a total profit of $256M.

However, looking at the "extraordinary items" as suggested in the article, AMD had a $30M writeoff in 2006, ballooning to a $551M writeoff the following year, and up to $684M last year.

OTOH, Intel had zero "extraordinary items" in the last 5 years.

Also, if you look at their gross revenue, it has pretty much stayed at ~$5.8B each of the last 4 years, despite the overall economic growth during that period (up until Oct. 2008 anyway). Of course, a lot of that is due to their selling off various assets - as can be seen by looking at AMD's total assets & total current assets.

That said, AMD stock has jumped up by 75% in the last month, whereas Intel has only increased by 31% in the same month.

 

[jimmysmitty]

AMD is going to pull through just fine. They own the mid and low end right now and in the upper end still have the platform price advantage.
ATI is taking graphics market share from Nvidia every day, not to mention AMD chipsets are the king platform for AMD processors right now, almost nobody is buying nvidia chipsets for AMD cpu's anymore and that wont change anytime soon.

Yea but what will happen when Nehalem hits the server market soon? Thats AMDs bread and butter right there. If Nehalem can take a lot of market share back it will hurt AMD a lot. But then again I look at it from a more "what they make money on" perspective and for AMD thats the server market, for now.

That's right,

AMD ships 50 million GPUs for Nintendo Wii

Graphics card and CPU chipmaker AMD announced on Wednesday that it has shipped 50 million of its GPUs, nicknamed Hollywood, for the Nintendo Wii gaming console. The milestone means Hollywood is the most popular AMD graphics processor for gaming consoles. AMD has a 10-year history of supplying Nintendo with graphics processors, as it provided the Nintendo GameCube system, the Wii's predecessor, with a graphics processing solution.


More at:

http://www.electronista.com/articles/09/03/11/nintendo.ships.50m.wiis/

I have a Wii for my 46" Samsung.

What ATI makes is not enough to keep all of AMD afloat. This has been and always will be the case.

It would be like saying nVidias chipset sales keep them afloat. Not possible.

 

[Scotteq]

Reminder: You can love the technology all you want, but understand that the Moody's report is a measure of Financial strength. Moody's is not a small organization - Their analyses of risk and credit worthiness extends to Nations, not just corporations. I have zero doubt that Moody's are quite aware of the size and extent of recent investments in AMD. Indeed, it is *very* much in AMD's best interests to make this clear to Moody's.


Regarding the technology itself: Moody's couldn't care less, except insofar as sales provide the steady stream of income necessary to meet debt obligations. MIPS, FLOPS, HTT, and QPI??? OUT!! EBITDA and PL Ratios?? IN!! "FIFO" and "LIFO" refer to inventories not data... And I assure you that Margins and Yields at Moody's have exactly zero to do with Silicon.

 

[hragarand]

MGM was on the moody bottom rung list - looks like they hit a buzz saw today.

http://www.reuters.com/article/bondsNews/idUSN2350027020090323