Article: AMD's Large Debt Mounting Up Fast

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Is this a CPU forum or a stock tip and accounting fan forum? Why are threads like this allowed to stay? Are there no moderators?
If you don't like it....there are many other active threads, that you can share your genius in. :x

Wow. You pegged me for a genius by reading three sentences. I am impressed. This is supposed to be a CPU forum, to discuss CPU's. NOT financial and stock data. That can be had at countless other sites. This thread is a waste of bandwidth and disk space and it's only purpose is for raving Intel fanbois to get their digital rocks off. In other words, flamebait. Looks like THG is more concerned with post counts than they are with staying on topic and limiting crap posts. Don't like my posts? Then don't read them and keep your useless opinions to yourself.Just like i said to you. Obviously, you think your opinion is Gospel....as you joined just to bitch. Go away, little boy. :roll:


Actually, all of my other posts have been quite on topic and genial, so your assertion that I just joined to bitch has just been squashed. I took exception to this drivel and flame bait. My opinion is just that opinion, as to the FACT that this thread is off topic and out of place is just that, fact.

I am neither little nor a boy. Keep your keyboard bravery to yourself. Your "parts" are still the same size. As for me, I was building computers, fixing mainframes and writing code in 1977. If you had asked that, you wouldn't look like such an ass for calling me a little boy. 'Nuff said, thats far too much fanboi for me today. Run along now, I am sure there are other ways for you to indulge your "mine is bigger than yours" fetish.

Out of all of the inappropriate threads in the CPU forum, this one seems like a strange one to draw the line on. What is it about this thread that makes it that much more inappropriate than all of the other threads?
 
we discuss cpu manufacturers finances here. I believe that I had a large hand in making it so. And now we have incredible minds to discuss it with. And thats the way it is here. love it or leave it alone.

The more the merrier dewd, every poster with great ideas is appreciated and our financial talks here are part of our deep appreciation for the world of tech.

we wont stop discussing finances on your behalf. I should hope you may add too it rather than distract it.If you cannot or will not add to it just ignore the financial talk.

Well thank you for having the only civil reply to my post. Perhaps I am too old. There was a time when staying on topic was important. You were expected to stay on topic and couldn't just post anything you wanted anywhere you wanted. Too much of that and all devolves into chaos and the next thing you know, you have to wade through tons of off topic material to get something useful. This was how it was with Usenet until the trolls and spammers made it the clusterf*ck it is today.

I will defer to your request as you made it with respect and civility. thank you for that.

For the functionally illiterate, the word "necro" is a Latin base word. It simply means "death". It is short for Necroscope. A series of very good Vampire books by Brian Lumley. As for the mixed upper and lower case, that was first spelled that way at a LAN party by some friends who wrote it on the leader board and my name tag that way. I liked it and have used it ever since. As for being 1337, I guess that depends on who you talk to. The ladies sure seem to think so. 😳

BTW, Beerandcandy, can I have some of what your smoking? 😀
 
I'll make money yet. I'm counting on at least a $2 gain in price. If not, I'll just buy 500 more shares to shore up the company.

I has thought you should have sold when the stock was in the mid 14's for a quick profit.

There was once a story of someone who was buying a hundred dollars of companies stock with every paycheck. As the stock price went down, the hundred dollars bought more and more stock. Finally, one week he was told he couldn't buy any more of the company's stock. He asked why and was told that he had bought every share of stock the company had.

I don't see AMD as getting into the penny stock range, but its sure enough in the gambling range. If it does get low enough, I make make the gamble again and hope to recover some of my earlier losses. But as Vern wrote, its a sad situation and unless AMD can pull off a miracle, I don't expect the stock going up a bunch for a long time, mainly 50 cents here, or a dollar there before falling back down.
 
I'll make money yet. I'm counting on at least a $2 gain in price. If not, I'll just buy 500 more shares to shore up the company.

I has thought you should have sold when the stock was in the mid 14's for a quick profit.

But as Vern wrote, its a sad situation and unless AMD can pull off a miracle, I don't expect the stock going up a bunch for a long time, mainly 50 cents here, or a dollar there before falling back down.

Ninja I would have to agree with sailer, and vern without something to wow the market it's a stedy decline with a .50-1. dollar bounce here and there. You aren't going to see 15 for quite a while unless there is a private equity buyout. But after thier last voodoo bond finance scheme I doubt you will see private equity sniff around again.
 
when you see how Twisted sister ,bald eagle ,jack,periander,as well as several others can cover financials youll be thankfull. Join a great financials topic with all those guys, You'll be glad you did.

Oh vern, you forget the man with the balls of steel SIRKILLALOT who's been in and out of AMD a couple times last month even just days before the Q1 bloodbath report and made out like a bandito.
 
when you see how Twisted sister ,bald eagle ,jack,periander,as well as several others can cover financials youll be thankfull. Join a great financials topic with all those guys, You'll be glad you did.

Oh vern, you forget the man with the balls of steel SIRKILLALOT who's been in and out of AMD a couple times last month even just days before the Q1 bloodbath report and made out like a bandito.

I don't forget him, I even envy his courage and his timing. That said, the coin could just as easily flipped the other direction and headed for the bargin basement.
 
when you see how Twisted sister ,bald eagle ,jack,periander,as well as several others can cover financials youll be thankfull. Join a great financials topic with all those guys, You'll be glad you did.

I'll keep that in mind. Let me ask you this. Being a simple engineer and by no means a financial whiz, why not buy AMD stock low now? I bought 300 shares of Cisco in July 97' at $7.42 a share and sold them in 2000 for just over $63 a share. A tidy profit indeed. In fact I read the writing on the wall and dumped almost all of my tech stocks in 2000.

My point is, despite the doomsayers screaming that AMD is finished, I don't see AMD going out of business and I am not looking for a fast turn around, so why not?
 
when you see how Twisted sister ,bald eagle ,jack,periander,as well as several others can cover financials youll be thankfull. Join a great financials topic with all those guys, You'll be glad you did.

I'll keep that in mind. Let me ask you this. Being a simple engineer and by no means a financial whiz, why not buy AMD stock low now? I bought 300 shares of Cisco in July 97' at $7.42 a share and sold them in 2000 for just over $63 a share. A tidy profit indeed. In fact I read the writing on the wall and dumped almost all of my tech stocks in 2000.

My point is, despite the doomsayers screaming that AMD is finished, I don't see AMD going out of business and I am not looking for a fast turn around, so why not?

First, for long term retirement planning... it's best to go diversified (e.g. mutual funds, ETFs). Never bet your nest egg on a stock/company. It doesn't sound like you are, but I just wanted people to know that when I invest in a specific company... my investment $$ is not part of my retirement contributions... just extra money I have to play with.

Also, if your employer does matching 401Ks with stock... you should really think about converting the stock (or a portion of it) to a mutual fund. You're not betraying your company, you're just being financially wise.

On to AMD, if you think AMD will survive and prosper... then go for it. Nobody is here trying to convince someone to buy or sell a particular stock. It's your money and your sleep... so good luck! :)

I happen to be very bearish on this stock myself. I could easily see a flat to general upward movement of stock price till one quarter AFTER barcy launches.

Then all bets are off. AMDs future viability = Barcy. It's that simple.

AMD exposed it's underbelly with the ATI acquisition, can Intel deliver the 1 product/price death kill? I would be very concerned with going long on a company that is only 1 failed/mediocre product showing away from BK.

The R600s and gpus are not going to save AMD... just take a look at ATI's income/cash flow statements before the acquisition.

I'm fairly confident that AMD will probably go Chap11 and then remerge a stronger (albeit smaller & more focused) company.
 
I am not willing to agree on chap 11.

That's what makes the market move... everyone has a different price target :wink:

BTW - I'm not short yet on this stock, I'm waiting for the moment of maximum optimism (ie - highest stock price). I think there is some healthy upward room to go for this stock... before the hammer drops.

I'm a patient investor and try to avoid tying up my capital longer than necessary. 8)
 
when you see how Twisted sister ,bald eagle ,jack,periander,as well as several others can cover financials youll be thankfull. Join a great financials topic with all those guys, You'll be glad you did.

I'll keep that in mind. Let me ask you this. Being a simple engineer and by no means a financial whiz, why not buy AMD stock low now? I bought 300 shares of Cisco in July 97' at $7.42 a share and sold them in 2000 for just over $63 a share. A tidy profit indeed. In fact I read the writing on the wall and dumped almost all of my tech stocks in 2000.

My point is, despite the doomsayers screaming that AMD is finished, I don't see AMD going out of business and I am not looking for a fast turn around, so why not?

Well you have got to understand our sarcasm; the regulars here are jabbing AMD in the ribs for their planning and joking about an AMAT buyout or merger. most of us are too wise to this to think AMD is going under.

As far as stock ,we are waiting for the bottom. I have a sneaky suspicion were at or near it considering new news and near launch dates. I was hoping for 11 .My prediction for amd for the year was high 9's worst case high 11's preferable and 13's best case.
I am thinking the high 11 wont be allowed by certain elements as the stock will need to regain value this year. I will happily consider cramer eating his words about AMD this year. :twisted:

I still think from here AMD has a 3 dollar plus gain potential at least. And as high as 7 dollars of gain room By Q4. But thats optomistic.

My thoughts exactly.... almost. I was thinking 13 would be bottom. I just tend to hold stocks years instead of quarters. I am not trying to make a living at it. I do well enough with my current job. I dabble a bit and squirrel away the profits for a nice retirement. Hopefully!

As for AMD's ability to deliver competitive products, who knows? They have more than enough talent in engineering. look at a list of their Corporate Fellows and Senior Fellows. Pretty damn impressive. Also, AMD still has a perpetual right to use Alpha tech that it got from DEC and was grandfathered in when Compaq bought DEC and also when HP bought Compaq. There are still some nifty tricks that went into the EV9 that never saw the light of day thanks to Compaq. I have watched the tech media and industry underestimate AMD time and again. The world + dog screamed that AMD was done when the Pentium was released and AMD could no longer copy Intel. Granted the K5 was a dud, but for a first try it got the job done and generated income to keep them afloat until the more worthy K6 came along. Which in turn keep the $$ flowing until K7 put serious pressure on Intel for the first time.

Personally, I think Barcelona will be a pleasant surprise. The Intel fanboys have worked themselves up into a frenzy over the lack of benchmarks. I think AMD learned from Intel's mistake of hyping the C2D before it's launch and watching the sale of Netburst chips just stop dead. Intel took a bath on that glut of chips. Sales are bad enough right now for AMD, so why make things worse by slowing sales even further by causing ppl to wait for Barcelona?

AMD will be around for a long time to come and the performance crown will trade places again and again.....
 
BTW - If I were long or for those longs out there... I would be very tempted to buy some 2009 calls. You could really leverage your investment capital.

I will show my ignorance here. What are calls?
 
BTW - If I were long or for those longs out there... I would be very tempted to buy some 2009 calls. You could really leverage your investment capital.

I will show my ignorance here. What are calls?

A Call is an option contract giving the owner the right (but not the obligation) to buy a specified amount of an underlying security at a specified price within a specified time. AMD just used this to cap the bond conversion offering so if the stock goes through the roof and the bonds are converted they can buy up the converted bonds at near the conversion price.
 
Twisted Sister, I do have a well rounded 401K with mutuals and stock. Very little is my own companies stock as we have been getting beat up since 2000. 🙁 Even though we lack any SERIOUS competition. The stocks I have mentioned were and will always be bought and sold in addition to my 401k.

I do disagree that all rides on Barcelona. Unless it's a complete failure (IE slower than C2D) then AMD will live to fight another day. just my 2 cents.

I will agree that AMD weakened itself with the ATI buy, but I see little other choice. I think we will see some exciting tech come out of that merger. Provided AMD survives and for all our sakes I hope they do.

Don't worry, I wasn't looking to get buying advice. Just opinions and thanks for yours.
 
BTW - If I were long or for those longs out there... I would be very tempted to buy some 2009 calls. You could really leverage your investment capital.

I will show my ignorance here. What are calls?

No problem... they are essentially options. "Calls" bet that the stock will go up over the excise price, "Puts" bet that the stock will go down in price.

First go here:

http://finance.yahoo.com/q/op?s=AMD&m=2009-01

In the Call section, let's take an example. The "15.00" is selling for $2.89. So essentially, once the price of AMD stock gets over $17.89 ($15.00 + $2.89 premium) you start to make money. Here's where you make a ton of dough:

Supposed you were confident that by Jan 2009 the price of AMD stock would be $20 or more and you only had $1000 to invest. Well you could buy the stock outright for $13.75 a share = 72 Shares.

By 2009, @ $20 you would make $6.25 a share for $455 in total profits.

Now, if you invested that same $1000 in the $15.00 Calls. You could buy the contracts for $2.89 each. So $1000/2.89= 346 shares.

Remember, you only make money when the contract goes above $17.89. So your profit would be $20-17.89 = $2.11 per share. But since you could buy 346 shares, your total gain is $730 vs. $455. The results get more pronounce if the price goes above $20.

The risk with options is that you DO NOT OWN THE STOCK... just the right to buy/sell it. So if the stock price is below $15 on the day of expiration of the option, you lose your entire investment. If its between $15.01 and $17.89... you can recover some losses (depending on the final price).

Options in of themselves also move in value as people speculate on stock. So you don't have to hold on to them till it hits the strike price.

For example, if it’s Jan 2007 and the option expires in Jan 2009... but the stock is already above $15.00 a share. The actual price of the option will be hire than the stock trading price. So, if the AMD stock is trading at $18 a share in Jan 2007, the $15.00 option (that you bought for $17.89) would now be trading at a substantial premium because it has a full year left and is in the black.

Research it though, I'm not a broker so please do not follow my advice (besides I'm bearish... remember) :lol:
 
Personally, I think Barcelona will be a pleasant surprise. The Intel fanboys have worked themselves up into a frenzy over the lack of benchmarks. I think AMD learned from Intel's mistake of hyping the C2D before it's launch and watching the sale of Netburst chips just stop dead. Intel took a bath on that glut of chips. Sales are bad enough right now for AMD, so why make things worse by slowing sales even further by causing ppl to wait for Barcelona?

AMD will be around for a long time to come and the performance crown will trade places again and again.....

The problem with your speculation about Barcelona and why AMD isn't showing what they have is that you aren't making an apples to apples comparison. Intel has pricing power that AMD doesn't. This is because AMD can't supply the whole market, while Intel pretty much can. When Intel made the C2D announcement, they were still charging as much for their PD as AMD was for K8. They were doing this even though their product was inferior. They could do it because of their market share and reputation. Currently, AMD is pretty much flat-lined on K8 and has dropped the price through the floor. A strong K10 that works on the same motherboard as K8 can only help them at this point. AMD has already taken a bath and is ready to drown. A solid K10 demonstration won't hurt them.
 
When Intel made the C2D announcement, they were still charging as much for their PD as AMD was for K8.

I'll agree with everything else except for this statement. Intel dropped prices drastically even before the C2D was released. Everybody saw the benchmarks and saw the marketing from Intel and EVERYBODY decided to wait for C2D. P4 and PD sales slumped hard and Intel had to have a fire sale to get rid of them. They also flooded the channel with chips leading up to this point and had to drop prices on a lot more chips than they usually would have had.
 
Research it though, I'm not a broker so please do not follow my advice (besides I'm bearish... remember)

Don't worry. It was a theoretical question anyway. I am not looking to buy any stock right now.

As for my retirement, I am not really worried. The 4700 shares of Wal-Mart that I hold will be a good starting point. (From the dark days of my college years. through ESP and splits) My 401k and individual investments are just gravy. 😀
 
I do think there is a possibility that we have forged an unhealthy negativity to AMD future products that could backfire on all of us and apparently Intel is agressively trying to route any potential of just that.

I dont think the Intel heads underestimate AMD the way that we seem to, but as enthusiast end users its kind of par for the course.

There are some huge blind spots in the AMD press dept which could overthrow the whole past years negative news if they were incredible at release.

The chipsets are faring very well in reviews so far and yet to be released chipsets look even better. So it is always wise to err on the side of caution but i get a feeling you are more conservative than I.
A lot of the AMD negativity has been generated by AMD themselves. They constantly overstate revenue and delay products without providing any indication of what to expect.

Intel got blindsided by AMD with the Athlon and then stomped again with the intro of Athlon 64. They struck a stuning blow to AMD with the Core2 and are not about to let AMD stand up to take another swing.

If Intel's plan to deliver a new architecture every 2 years holds true I believe AMD is going to be simply driven further and further behind in technology, similar to VIA (chipsets anyone?).