AMD asks to double common stock to 1.5 billion shares

[tiger00]

you're an embarrasment to yourself. Doubling unissued shares does absolutely nothing to th value of the stock or the price per share. these are unissued, not outstanding. you could raise the number of unissued shares by a trillion, it would make no difference to the value or anything else.

Doubling the shares, unissued or otherwise, does nothing to the value of the stock? I think you need to go back and study math again. Doubling the number of shares halves the value of the per share. The company is only worth a given amount of money. An amount of shares are issued based upon that value. If the share number is increased, the per share valuation is decreased in like percentage unless the company does something to increase its value in like percentage.

this is exactly the stupidity i am talking about. doubling th unissued shares DOES NOT NOT NOT NOT NOT halve the value per share. a doubling of outstanding shares would that. So, yes, they are different. Math is not the problem for anyone here. Perhaps you should take a class in finance. oh now, thats right you'd rather just insist that you're right like that makes it so

 

[tiger00]

if, and when, amd chooses to issue these shares the price at which it does so and the use to which that money is put will determine any dillution to the earnings per share.

But, i'm glad you finally understand that this transaction does nothing per se. Yes, it may change some people's expectations as i said before - in that it perhaps reflects a cash flow problem. Will there be a negative reactoin on monday? maybe so... but to suggest that the stock will be cut in half to say $7, is unbelieveably stupid.

 

[halbhh]

Question is will it be over time as a margins accentuation or all at once as a huge plunge?


Ride AMD short,a one day crash at 7dollars is pretty nice.

News like this often creates an oversold situation, so after monday buy back in for a quick 5-10% return. That is risky though, very much like day trading so don't take my advise on that, I will deny I ever suggested it ...


It's always tempting to spin the wheel, and I've done it a few times, but....I'm inclined to continue doting on the new baby here instead.

Saw this you might find a bit interesting:

"The selloff probably has excited private-equity firms like Blackstone Group, Bain Capital and Kohlberg Kravis Roberts, which are sitting on record levels of cash. In a recent report, Credit Suisse strategist Andrew Garthwaite estimated there is $250 billion to $280 billion of uninvested private-equity money, which could support $1.3 trillion of leveraged buyouts. With private-equity firms continuing to raise new money, their investment firepower will only grow."

"sell off" is re the stock market this last week. excerpt from this weeks Barron's cover story, on Newstands everywhere.

 

[sailer]

Question is will it be over time as a margins accentuation or all at once as a huge plunge?


Ride AMD short,a one day crash at 7dollars is pretty nice.

Well, after much thinking, I decided to put in a sell order. Only got $14.18 and will take a $2200 loss, but I decided that's better than hanging on and taking a worse loss. It also gives me the option of buying back in with the same amount of money later if the stock drops far enough to interest my gambling fever again.

Yeah, it drops to $7. Then I can buy back and double my holdings and if K8L, etc do well, I ride it up and make a fortune, less the $2200 loss of course. Of course, if the price goes up a bunch tomorrow, I'll be kicking myself.

 

[corvetteguy]

I guess Jack likes babes.

 

[jackxlj]

If they dont sell them,then your right, it wont reflect on stock prices at all, except where it counts, in investor trust. But the only reasonto issue that many stocks, is to sale them. Im gunna ignore your flames, and just point out the obviouse...if AMD was doing well, they wouldnt be doing this..if they didnt have more bills going out, then in, they wouldnt be doing this, IF they werent worried about meeting all those loan payments, that they know they cant afford, then they wouldnt be doing this. Its math, everyday, there value drops just a little, every day, the price of their stock drops alittle, and every day, creditors are thinking about all those multibillion dollar loans...AMD is a company that is worth more in peices, then whole, if broken up, the peices would be worth almost double the value of the whole...and everyone knows this..AMD is going to issue those stocks, and on may 16, then will sale them. Before the new nvidia cards can hurt them more, before the midyear benchmarks for penryn can cripple them, they will sale them all, and if they are smart, they will pay the loans off in full, and take the lean months ahead, but more likely a partial payment and a prayer for fair weather ahead.

 

[r0x0r]

I guess Jack likes babes.

Speaking of which, it'll be his 1st birthday on the TH forums on Thursday.

I'll say it now 'cos I'll probably forget later.

Happy Birthday Jack, and may you average over 22 posts a day for yet another year.

 

[jackxlj]

lol

 

[halbhh]

[
Did I read right, you just had a baby???

Massive, uncontrollable, humongous, sincere and heartfelt congratulations.

jack

Thanks!

She's 7 weeks old now, but I'll tell ya, she still incredibly new to me!

 

[bydesign]

You are aware that Greenspan is not in office, right? He needs to shut-up and just go away at this point.

 

[jackxlj]

You are aware that Greenspan is not in office, right? He needs to shut-up and just go away at this point.

lol,who are you talking to?

 

[sailer]

[
Did I read right, you just had a baby???

Massive, uncontrollable, humongous, sincere and heartfelt congratulations.

jack

Thanks!

She's 7 weeks old now, but I'll tell ya, she still incredibly new to me!

Congrats with the baby! now you have the chance to bring her up right, teaching the important words; like video card, cpu, motherboard, etc. I can see it now, the kid's first kindergarten project, building a computer, to the amazement of the other kids and the teacher.

 

[r0x0r]

jack just got himself a brand new baby off the shelf I heard its got incredible upgrade capability.

He'd better hope it's the silent version!

Congrats on the new arrival halbhh. Just remember: You can't use Norton if she gets a virus :roll:

 

[r0x0r]

You are aware that Greenspan is not in office, right? He needs to shut-up and just go away at this point.

Even though this made absolutely no sense at all, your avatar still kicks arse (rotor fan here)

 

[sailer]

Question is will it be over time as a margins accentuation or all at once as a huge plunge?


Ride AMD short,a one day crash at 7dollars is pretty nice.

Well, after much thinking, I decided to put in a sell order. Only got $14.18 and will take a $2200 loss, but I decided that's better than hanging on and taking a worse loss. It also gives me the option of buying back in with the same amount of money later if the stock drops far enough to interest my gambling fever again.

Yeah, it drops to $7. Then I can buy back and double my holdings and if K8L, etc do well, I ride it up and make a fortune, less the $2200 loss of course. Of course, if the price goes up a bunch tomorrow, I'll be kicking myself.

Did you ask what the deal was with AMD from a broker? Seriously sailer its good to find out the ins and outs before you do this selling thing.and it wont be till after the SEC decides to allow it that anything major happens.

Its safe to assume monday will dive like mad from selling,also if the sec ruling hits investors acrossed the board shortselling becomes profitable in the morning.

Call a broker in the morning and dig for info,If selling goes rampant it could cause a shortselling reaction as is usually the case and in options if youre willing to play by the minute,your loss becomes a gain on short selling.
Need more info before you do anything.But I cant disagree with the action,as I would likely cut at a lower loss as well,but I would likely have sold after the delays when stocks were slightly above 15 after your 14.60 buy in.Alot of volume will change hands monday.

My broker doesn't have any advice. He says he doesn't know what to think except the stock is likely to take a bad hit tomorrow. He also isn't sure what the market in general will do through the week, but that the AMD was my weakest position by far. He said to hold everything else. maybe I'll catch a wild swing down and buy back in. Don't know. Maybe I'll take a walk into the desert and talk to some coyotes. They might know more then I do.


My kid said sell and get out while I have the chance. He and I both got thrashed the past week in our portfolioes, but we're holding on to everything else. He thinks I should take the money and invest in some other stock completely. I should have sold a few days ago, but hindsight is perfect, isn't it? Of course, I know tomorrow is a gamble and I may have taken the wrong side of it. Can only wait and see.

 

[qcmadness]

Why do you insist on the nVidia-AMD buyout?

Agreed. A massive pain for Nvidia due to ATi.
IBM buying AMD? Anyone ever heard of Lenevo?
Oh yes, ATi also make the Wii GPU, and we all know how well that is selling 😛
When AMD bought ATi, it has $2.6B cash on hand. Subtracting $0.6B debt, AMD still has $2B to buy ATi.

Now nVidia has only about $1B cash on hand. AMD now has a long-term debt of about $3.5B. It just does not make sense.

I don't know what will happen in the future. But now I would say that insisting nVidia may buy AMD is naive.

 

[r0x0r]

I don't know what will happen in the future. But now I would say that insisting nVidia may buy AMD is naive.

For sure; it would be more feasible (but highly unlikely) that Microsoft is going to buy AMD so that they also have a PC harware division.

The Microsoft Radeon... Nup, doesn't work for me.

Ah, I love making up "what if" scenarios.

 

[halbhh]

Thanks guys. I've already gotten her started early. Some nights this time she doesn't go to sleep, and then her mom puts her in my arms, while I try to type messages and play chess, and read articles. She stares at the LCD until she falls asleep.

 

[halbhh]

Yeah, she's the first, and it's pretty amazing to me, especially when she smiles at me.

 

[r0x0r]

Thanks guys. I've already gotten her started early. Some nights this time she doesn't go to sleep, and then her mom puts her in my arms, while I try to type messages and play chess, and read articles. She stares at the LCD until she falls asleep.

Teacher: What's your New Year's resolution?
Your daughter: 2560x1600.

 

[lance525]

well your broker get paid to know so id do as you are doing and hold off on getting back in till the sec decides on the new shares

While I don't disagree with your speculations regarding how these shares will be used, there is no SEC approval required to simply boost the total number of shares authorized. An SEC filing is really only required to issue shares and they don't really "approve" the shares even then, they only validate that all due diligence has been done and the shareholder vote was held and is valid.

Unless you mean Shareholder approval (as opposed to SEC approval). In that case, yes, this whole thing could swing on the vote. But at the end of the day, I think most shareholders see that paying down debt, offering options to employee's so they can keep building the next great CPU and building a warchest for the future may eat into equity in the short term, but are necessary for any chance of future return.

So I think the vote will pass easily. I have no idea what the institutional holdings are for AMD, but I KNOW those guys are reading the papers. And they have seen this done a thousand times and they have seen it work as well.

I hope it does work, personally.

 

[sailer]

If stocks return to current levels by years end you will have done pretty well.Options shortselling is risky as hell with AMD but you are looking at a big pip spread on monday going down,so a block may pay off nicely with shortselling;but that is some serious gambling.

While I was typing all this in, the words of an old Kenny Rogers song came to mind,"you got to know when to hold em, know when to fold em. Know when to walk away, know when to run". Well, tonight I folded. Tomorrow will be another day for gambling.

 

[jackxlj]

AMD had more cash on hand, but les credit value. Nvidia has an a+ rateing, AMD has never had better then a B at best. Nvidia also needs a license to make x86 chips. Look deeper into Nvidia, that have 1bill on hand, simple becouse they reinvest so much of it. Look at the income they are produceing. If they bought AMD for 7 bill, they could get 2.5 b for ati. in q3 Nvidia made 820 mil. thats almost 1bill, and they did it in one quarter. http://phx.corporate-ir.net/phoenix.zhtml?c=116466&p=irol-newsArticle&ID=929469&highlight=
true,thats revenue, and discounting what they make off of stock ownerships,and intrest in banks and such, lowers that alot, but just look at the record. They are a company on the movie, they have never, I repeat NEVER, has Nvidia shown a loss, they had the loan they took with BoA for startup costs paid off in 4 years, and it was a 15 year loan, when they expanded in '99 they took another loan, and paid it off in 3. If Nvidia wants AMD, BoA will write the check, even if they think its a bad move, they will write it, simply becouse Nvidia has proven that they will pay back what they owe, and before its due.

 

[halbhh]

Yeah, she's the first, and it's pretty amazing to me, especially when she smiles at me.

The smile get's ya every time doesn't it.... more powerful than a locomotive -- becareful, she will learn quickly to get what she wants all she has to do is smile and let out a little giggle.

heh heh. A friend's wife says she'll be a little princess.

 

[jackxlj]

again, just a few days till we know,but until then, AMD stock is going to plummet