sailer
Splendid
- Apr 9, 2006
- 4,970
- 2
- 22,810
From where I stand its a real down day. The only stock that I have which went up is Exxon. I've lost around $10,000 in the past week, with AMD being the worst indivdual stock. Not much to do but hang on. Everything else I have is good, bedrock stuff that won't go away completely. Nice thing about that stuff going down is that I can move into it on the cheap side. If Microsoft keeps going down, I might increase it a bit. Its down about $4 from its high a month ago and it pays a fair dividend.
The SEC filing asks for authorization to double the shares outstanding to as many as 1.5 billion. I am quite certain they are not going to instantly dump another 750 million shares on the market. It does, however, indicate they feel they may need to issue more shares to bring in revenue (it even says that in the filing). And yes, that would dilute the value of shares already outstanding. To what extent would be determined by the number of new shares issued - which won't be 750 million in one fell swoop.
Note that Wall Street did not panick and halve the price of AMD stock today (the drop that did happen was mainly due to the profit warning). That's because this is sort of share authorization is just normal business practice.
Note that Wall Street did not panick and halve the price of AMD stock today (the drop that did happen was mainly due to the profit warning). That's because this is sort of share authorization is just normal business practice.
again, amd wont be able to release the shares to may, so anything we see today is loss of confidence, not just in the new shares that are comeing, but everything else as well...by the end of may, we will see the effect of this, depending on how amd sales the shares they issue
sailer
Splendid
- Apr 9, 2006
- 4,970
- 2
- 22,810
Well, the Dow dropped 63.69, Nasdaq down 27.33 and Standard and Poors down 13.05. Looks like I did sell too quickly with the AMD for the day, but it still ended down. That happens. But tomorrow is another trading day. Wonder what the rest of the week will be like.
At least if I buy a Nvidia card, I won't feel like a traitor to my company.
I don't know any of the basis for this decision either. To be perfectly honest, I still don't understand why AMD bought ATI in the first place. That's why I refrained from drawing immediate conclusions and said, the stock price might go up or if the decision is financialy viable.
what say you now? 😀
i give you credit though for changing your opinion as the discussion has moved.
i have to move on to other students...
verndewd: you are making stuff up. stop it. :roll:
you don't know crap about the SEC - they won't care abt this AT ALL.
tempory dillution does NOT = long term bad. companies don't do transactions unless it is in the future interest of helping earnings. pro forma eps is only a metric and hardly the end of the discussion. it is a useful tool, but not anything real.
sidenote: new issued shares are not necessarily dillutive. it depends on the price paid and the uses the money is put to. yes, typically new issued shares have a dillutive pro forma effect, but smart investors and managment are more interested in the future effect
to say that when the shares are issued the stock will be cut its price in half is PURE stupidity. it assumes thery simply have a nice bonfire with the money raised... good grief :roll:
some people might think i'm being harsh :twisted: :twisted:
but, there are a number of people talking completely out their butts, who don't know jack abt the subject, and yet present themselves as some sort of expert authority. to those of us who do understand you just look silly, its painfully obvious, please stop making people dumber.
-tiger
It looks like AMD's stock didn't fall the 3-5%+ people were predicting over the weekend, some people really did go overboard with these negative comments. I don't blame them its the stock market, people have shares in AMD they panick but i do feel people go over the top sometimes with the doom and gloom scenario. I guess thats why they're are not stock brokers. Personally i do not think AMD's share will drop much lower then a low 13 dollers this week but then again like most of you peeps i'm only guessing and will probably end up wrong.
Iam glad that you are proud of yourself for the corrections but others have helped refine the statements to a more accurate portrayal before you prided yourself on bieng the hero. :lol:
bear in mind that so far yours is the worst post for self control in the thread out of 10 pages,as its nearer inflammatory than anyones.Take it easy were all here to explore lifes meaning ,not go out and bash heads in.
breathe dewd, breathe
no, actually no one has said it completly correct yet. my post corrected a lot of the partially correct posts.
and as for breathing easy, YOU'RE the one talking out your ass
i've read the entire post and you regularly have stated things that are wholly incorrect or misleading.
your just mad that somone called you out on it. :lol:
life's meaning? i don't know abt that. But i do know that people who read my posts and lance525's posts will be better educated abt the subject, while people who trust you walk away misinformed.
-tiger
BaldEagle
Distinguished
- Jul 28, 2004
- 652
- 0
- 18,980
It certainly did fall where people predicted it opened down 4%.
I would suspect the cat got out of the bag early on the revenue announcement and some big players got wind of the news Friday morning. There was a huge volume of AMD Friday morning that shaved off 3%.
Twisted_Sister
Distinguished
- Jan 20, 2007
- 573
- 0
- 18,980
Sorry, missed this one.
AMD+ATI is not a merger but a takeover. And yes, many companies prospered by acquiring others (google John Chambers)
Plus if by default all mergers failed, why would anyone try it?
AQUISITION 8O 8O A takeover is a different beast. people are referring to it as a merger and all that ,and some are from influential financial blogs. AMD aquired ATI.
Every merger is essentially an acquisition... semantics. I stand by my statement.
Harvard Business Review did a detailed study on M&A activity and this is where I picked up this little factoid (sorry, not linkable... you must go to Business School or subscribe to the HBR).
Why? Why, if they fail the vast majority of the time, do companies still do them?
You'll hear "strategic" often times.
"Strategic" - either take out an emerging competitor, copy the M&A activity of a major competitor, or enter a new segment (geographic or product).
I really don't have much time to write, but it also comes down to the narcissism of senior management.
Iam glad that you are proud of yourself for the corrections but others have helped refine the statements to a more accurate portrayal before you prided yourself on bieng the hero. :lol:
bear in mind that so far yours is the worst post for self control in the thread out of 10 pages,as its nearer inflammatory than anyones.Take it easy were all here to explore lifes meaning ,not go out and bash heads in.
breathe dewd, breathe
no, actually no one has said it completly correct yet. my post corrected a lot of the partially correct posts.
and as for breathing easy, YOU'RE the one talking out your ass
i've read the entire post and you regularly have stated things that are wholly incorrect or misleading.
your just mad that somone called you out on it. :lol:
life's meaning? i don't know abt that. But i do know that people who read my posts and lance525's posts will be better educated abt the subject, while people who trust you walk away misinformed.
-tiger
And that quantifies your mad claims how? How is flaming proving anything? Dont play the downplay to avoid your ignorant suppositions with me.Just dont .
I always tell people that my opinion is not a professional opinion.
I am here speaking with peers about assumptions to your discrediting flames?Not that you have validated much but a low level of contentment about your own life.
Give the facts if I am wrong i am wrong or STFU! dont keep playing the hero with nothing. and stop bieng argumentative with me.
awwww, did i hurt your feelings???
i said your were wrong and making stuff up... which is true
and now you take it PERSONAL, abt my life and stuff.... hahaha
yeah, who went to far? :roll:
see, thats what people do when they have nothing left...
the hero? well, if being right makes me a hero, then thanks 😀
i was just trying to help some people who were interested in the subject.
if you consider it a flame, well if someone insisted that you could install a core 2 duo on a socket 478 board, what would happen?
i said you were making stuff up and to stop - you don't want to hear that then stop misinforming people.
Twisted_Sister
Distinguished
- Jan 20, 2007
- 573
- 0
- 18,980
FYI - Tiger
Not to jump on you, but issuing stock is the MOST expensive form of funding that a company can engage in.
It also demonstrates:
1) the inability to secure debt (the cheapest form of funding) - a very troubling sign
2) senior management's outlook on future stock value
Not to jump on you, but issuing stock is the MOST expensive form of funding that a company can engage in.
It also demonstrates:
1) the inability to secure debt (the cheapest form of funding) - a very troubling sign
2) senior management's outlook on future stock value
Twisted_Sister
Distinguished
- Jan 20, 2007
- 573
- 0
- 18,980
The study was on Merger's and Aquisitions... hostile and "friendly."
It didn't matter if it was a "friendly" aquisition, they still fail to produce value in excess of the premium paid.
Also, a key indicator of success is often whether it's a stock swap or cash aquisition. Stock swaps work out even worse over the long run.
hm,yall gotta chill with the flameing. Tiger,you are wrong and righ, its that easy, amd opened down 3%, in may, when the shareholders vote to approve the stock isue,we shall se how much of each. Vern, chill...
Ummm,anyone have any idea how many companys IBM and Intel bought to get where they are? Im sure it numbers in the hundreds. Surely the number of failed mergers must be les then 80%
Ummm,anyone have any idea how many companys IBM and Intel bought to get where they are? Im sure it numbers in the hundreds. Surely the number of failed mergers must be les then 80%
This is a very....very....very...very long shot.
And I am very....very....very...very much scared and highly.....highly.....highly impressed by the big names you threw out.
Jeez. If Harward says so and if you don't have time to let your humble servants - usselves - know what it says, don't you worry your majesty. We'll live.
Hi TS,
i'll be nicer, don't want to offend anyone
unfortunately this is not true all the time, although it is generally true.
a company has to do an anlysis on its cost of capital versus the cost of debt. True debt, tends to be cheaper but it really depends on what kind of debt... revolving credit, term loans, high-yield all have different rates. the problem of cost of capital is compunded by instruments like convertibles which have aspects of both.
so, equity is not always the most expensive form of capital raising. you also need to look at the future expectations... what is cheaper now could be more expensive later and vice versa.
i agree with your points for 1 & 2 as i siad back on like page 5 or so
but there are many other business factors as wellpeople often view debt as "bad." not saying that you are thinking this...btw, but some people do. debt is a legitiate part of the capital structure. how much debt is acceptable is hugely dependant upon the industry and relative risk
i think TSs point was, that AMD wouldnt be risking this, if they didnt have to, they would try something else. If the shareholders vote it down in may, hector is in trouble, if they approve it, and it doesnt do what Hector needs, hector is in trouble, if they approve and it saves amd,but destroys the value of the stock, hector is in trouble. If Hector could, I think he would much rather take another loan, if he could find anyone willing to issue him one. Debt in of itself isnt bad for a company, when your debt stunts your growth, then you have went over the edge into enemy land and no engines at all. Im not saying Hector was wrong o do this, nor right, but he picked one of many bad choices, from a list that had no good ones. You will notice, he waited till after close of market to say that barcelona wasnt until end of summer? I was expecting that news to launch on tuesday, but even so, he is betting on a low open, and then a raise like happened today. Troubled times ahead, with only a cold bed and bad dreams if they dont do something.
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