AMD asks to double common stock to 1.5 billion shares

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I did some digging and found the actual filing on the SEC website.

AMD SEC filing

To all of you that are currently holding AMD stock: I hope you like it with no vaseline as they dilute your equity by 50%.

Edit: Of course the current shareholders have to approve this first....
 
I always viewed issuance of new stock as a rob Peter to pay Paul tactic.

To those owning the stock:

what this means to you is that your stake in AMD is about to get cut in half with respect to the overall percentage of the company that you own.

Simple math states that if AMD currently has a market cap of 10billion and then the number of shares doubles, the price of each share has to get cut in half to maintain the same market cap of 10 billion.

If this passes, I project a new low of $4 to $5 per share at the bottom this summer.
 
Sharidouche, I don't believe even takes himself seriously. I am 99% certain he just tries to keep the hits to his site coming. Seems the best way for him to do this is to be just as ridiculous as humanly possible.

Deep down I don't want to believe a fellow member of the human race could really be this stupid.
 
The upside is that the stock could instantly start climbing.
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More shares outstanding means it will take a proportionally greater amount of buying or selling to move the price up or down. I guess we will find out Monday what the analysts and mutual funds think about this.

Are you thinking this is going to be a 2 for 1 stock split? (where all holders get an additional share for every share held and the price gets cut in half)?
 
I see this as VERY good news.
Usually if a company is doing badly (like stock < $4), the company will try to merge shares to keep it from being de-listed.
 
The upside is that the stock could instantly start climbing.
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Verndewd, there is no upside here.... if you have AMD stock, put in the sell order first thing monday morning. AMD is about to dilute itself 50%, and begin dumping that extra stock into the market.... this has no other affect but to drive the price down.

Listen to Jack or be prepared to lose your ass. This level of dilution is very bad for existing stock holders.
 
Three things that have been posted recently...

1. AMD talks about Intel cherrypicking benchmarks, then cherrypicks data. And says in the same breath that they are 'honest'.

2. Suddenly there's a rumour of a Monday launch of Barcelona.

3. Now there's an SEC filing for a doubling of their shares...

Draw your own conclusion, but mine is that I am glad I don't own any AMD shares.
 
On the sec filing they issued a vote methodology. And I am thinking the SEC may not like the theft of 3.5 billion in public value.
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I agree completely and I suspect the mutual funds will be dumping AMD hand over fist Monday morning.
 
Too bad the market price will most likely have fully adjusted to this filing already by the time your shares get on the market. Any intro finance class will tell you that you can't beat the market based on information in the public domain, meaning the really public domain like the SEC. You've got MAYBE 20 mins, tops, before the market has adjusted to information like this.

What you really should have done is sold at the first C2D benches, and buy again immediately after this measure is approved - IF you still believe there is an upside to the stock.

But that's the information that really matters - that last bit. Dumping your shares now if you think there is an upside to the stock is most likely NOT a good move.[/u]
 
Nope, bought 2000 shares in Jun of 05 (~ 15 bucks) for 30000 cost basis, sold in March of 06 for ~ 35 bucks, at 70000, for a nifty little short term capital gains of 40000, after tax about 25000 in the bank.

A general rule on investing ---- never look at 'what I could a made' and think 'I lost money'.... this is the way Baron thinks...
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Very nice :) Not knowing your financial situation, this might be peanuts or it might not - still very nice to see 100% gain in a year. I just wish I had the balls to put $30,000 of my own money into a single stock :roll:
 
uhhh I think you are assuming alot for what I have said.
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Was just in response to people saying dump the stock immediately monday morning

do well.... not rich, not poor. In a funny sorta way, I have taken about 1/2 of this amount of money and dumped it into new toys over the past 8 months.... 2 E6700, 1 X6800, a QX6700, a 8800 GTX and a 24" monitor.
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I finally went got a 24inch 1920x1200 and goddamn, how did I ever survive without it. But now I think, what a shame to have all these awesome pixels and no 8800GTX.. and my wallet's telling me there's barely enough left for a GTS.. sigh 8)
 
Not the wisest move,maybe but you could do it as a damage control move.
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Well that was my point, it's not a damage control move, unless you think there will be further bad news ahead. By the time you dump your stock, market will have adjusted to this information meaning you will be going out at the lowest point if you think, for example, Barcelona will rock or whatever.
 
I see this as VERY good news.
Usually if a company is doing badly (like stock < $4), the company will try to merge shares to keep it from being de-listed.
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This is not a stock split --- stock splits are good news as they are signs that a company expects to perform better over the long term. This is asking the shareholders to lower the equity value of the existing stock so AMD can sell more of itself as a means to raise much needed capital this is done because one is running out of money.

Usually, if a company is doing badly they issue more stock to raise operating cash.... this is exactly what AMD is doing.

Monday, close of the stock market, AMD will be down in the 13 range, maybe less.... the market is going to take this a bad sign.

Too bad, I thought this was a stock split.
I thought AMD had better engineers than Nvidia. So, what could the problem be?
 
uhhh I think you are assuming alot for what I have said.
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Was just in response to people saying dump the stock immediately monday morning

do well.... not rich, not poor. In a funny sorta way, I have taken about 1/2 of this amount of money and dumped it into new toys over the past 8 months.... 2 E6700, 1 X6800, a QX6700, a 8800 GTX and a 24" monitor.
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I finally went got a 24inch 1920x1200 and goddamn, how did I ever survive without it. But now I think, what a shame to have all these awesome pixels and no 8800GTX.. and my wallet's telling me there's barely enough left for a GTS.. sigh 8)

At Christmas I told my wife she was buying me a new monitor for my office. What she didn't know was that it was a 30 inch Dell monitor. When it showed up she was a little miffed. But I agree it's hard now to look at a 19 inch after using the 30.
 
Not the wisest move,maybe but you could do it as a damage control move.
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Well that was my point, it's not a damage control move, unless you think there will be further bad news ahead. By the time you dump your stock, market will have adjusted to this information meaning you will be going out at the lowest point if you think, for example, Barcelona will rock or whatever.

essentially we are saying the same thing. look back at what I typed as an "If then" factor on performance of upcoming releases.
Poor performance +split stock turns into damage control dumping half your shares.

Great performance+split stock=buying in at a great price to increase your shares.

Verndewed.... this is not a split :) .... when the 750 mill goes to 1.5 billion, existing shareholders will not get double their current shares.

A person owning 100 shares of AMD stock with 750 million shares will own 100 shares after AMD dilutes to 1.5 Billion shares.

In a split, a persion owning 100 shares at 10 bucks of company XYZ will own 200 shares at 5 bucks once company XYZ splits.

AMD is asking their shareholders to give over 1/2 of their equity.

I beg to differ on the bet of a dollar :wink: I bet one dollar its a split. :wink:

Why would a share owner give amd half their equity?I am sorry jack but no one in their right mind would do that.From your buy in ,they would be asking you for 15k as a gift.No I will stick with my position.SPLIT.

Vern, I have to agree with Jack on this. A split takes existing shares, and divides the individual share value by half while multiplying the total number of shares by 2 for a net sum zero change in any given stockholders portfolio value.

The real question to this move is why?

There are a bunch of possible reasons why. Try this one on for size. This is just one option, and not even my opinion. There are no facts to back this up, only that it exists as a possibility.

Protection.

It may be that by doubling the number of available stocks while reducing the cost, AMD is hoping to dillute current holders percentages while creating a rush on new stocks at lower proces thereby spreading total ownership and reducing the risk of a takeover.

We've all seen the take over rumour posts. Some of us are fairly skeptical, while others see the circumstances as at least presenting the opportunity. Some even see the situation as favorable. After the ATI buyout last year, when so many of us (myself included) said "no way it will happen", I would venture that at least some of us are more....open(?) to the possibility of an AMD takeover. I dont know, but among the possibilities, a takeover is an option regardless of its probability, and AMD attempting to protect itself by 'thickening' the stock numbers is also a possibility, even if not a realistic one.

Of course, Hector and the rest of the 'gang' could simply be trying to get their own mitts on more shares just for personal monetary gain, or trying get more cash for the company. Who knows with that bunch?
 
This is...wow...I wasnt realy expecting this,as recently I have put a rather large sum into buying AMD stock, and loseing half of that means my wife will be a bit mad...ahhh well. I can se several reasons for doing this, and all of them are legal,as the share holders will be required to vote on it, and its totaly legal to give your money away. It will raise alot of money for AMD, who neds it desperatly, it will make a takeover by anyone, though im leaning towards Nvidia on this, much harder sence it spreads ownership around, and in the end, if worse comes to worse, then it lessens the impact of loss, if the company goes bankrupt, although my thoughts on this are that Intel wont allow AMD to disappear unles Nvidia takes there place. As a shareholder, as much as its gunna hurt, and im thinking there aint enough vasaline in the world to make it not, that ill vote for this measure
 
The price depends on what they're able to get new people coming in to pay. To be honest, this does give more credence to the private equity buyout, as it is entirely possible that AMD has institutional purchase commitment at a level that they think would make it worthwhile. It could also, to use the expression, grease the wheels for a private equity partner to come in and snap up a lot of those new shares and gain an impressive foothold into the company for less than a full-on acquisition would cost. (For those wondering, no, issuance of new stock is not based on a fixed market cap; if approved by the SEC, such actions tend to increase the market cap, although it then makes the stock that much more sensitive to earnings reports... AMD may be wagering on the fact that the new revenue coming in from ATI might be enough to allow them to expand the stock issuance with minimal impact on share price).

I don't see the stock being in complete freefall, but I would probably hold off on buying stock at the moment, as it wouldn't surprise me if it were down to $9-$11 in six months. On the plus side, however, a new issuance of stock might be a good time to get into AMD stock... it doesn't quite have the sizzle of an IPO, but acquiring new AMD stock at $10 wouldn't be a terrible investment, all things considered.
 
this is going to hurt AMD,no matter how you look at it, it makes it look like they are running scared. I also dont see any non tech company stepping in to buy AMD, when there are atleast two companies that have the equity to buy them outright. I dont see IBM wanting to step in and go toe to toe with nvidia and Intel in one swoop...otoh I firmly think that Nvidia wants an x86 license, and would buy AMD to get it, and then sale off ATI to increase cash on hand.
 
speculation.stock splits double stock ownership at half the value.

I stand by my assertion.!00% Ill bet you a buck as well but thats it 2dollars is my max bet. :lol:
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Yes, thats exactly what they do.
But this is not what AMD is doing. Its expanding its stock offering, meaning existing share holders portfolios do not expand in number of shares, but do shink in value per share. In short, current stock holders are taking it....in the shorts :wink: :lol: Meanwhile, AMD will be selling off the new shares.

Again, the question is why?
 
This is...wow...I wasnt realy expecting this,as recently I have put a rather large sum into buying AMD stock, and loseing half of that means my wife will be a bit mad...ahhh well. I can se several reasons for doing this, and all of them are legal,as the share holders will be required to vote on it, and its totaly legal to give your money away. It will raise alot of money for AMD, who neds it desperatly, it will make a takeover by anyone, though im leaning towards Nvidia on this, much harder sence it spreads ownership around, and in the end, if worse comes to worse, then it lessens the impact of loss, if the company goes bankrupt, although my thoughts on this are that Intel wont allow AMD to disappear unles Nvidia takes there place. As a shareholder, as much as its gunna hurt, and im thinking there aint enough vasaline in the world to make it not, that ill vote for this measure
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I dont think anyone was expecting this. All the reasons you list are viable, the question is: Which reason, or combination of reasons prompted AMD to do this and what does it say about their financial state?
 
AMD has been struggleing with cash isues for a long time now...the purchase of ATI made it worse....and the thrashing of k8 by conroe was a sucker punch from right field that they werent expecting...its a formulae for disaster...at the time buying ati was smart..in hindsight it was stupid...i wish i could always see into the future...but im puting nvidia stock on my plans of purchase for monday morning
 
AMD has been struggleing with cash isues for a long time now...the purchase of ATI made it worse....and the thrashing of k8 by conroe was a sucker punch from right field that they werent expecting...its a formulae for disaster...at the time buying ati was smart..in hindsight it was stupid...i wish i could always see into the future...but im puting nvidia stock on my plans of purchase for monday morning
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Yup. But at the same time, while making new offerings could improve the cash situation, it could be interpreted as a sign of desperation. Or not. Or a lot of other things. I guess we'll have to wait and see.
 
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