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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 216.64-2.0%10:29 AM EST

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To: captainfreedom who wrote (226885)2/26/2007 2:57:01 PM
From: seti of 275872
 

But just let's say hypothetically, if the rumours were true, who would it be that are buying out AMD,


I do not know. I tend to doubt IBM wants to get into that freakin mess. They have spent the last decade+ diversifying away from hardware. Although their service side is now facing competition from the likes of Infosys and Wipro.

As for PE, whoever that may be would be looking at a stock that has moved nowhere (fluctuations aside) in 24 years, and would face the prospect of going toe to toe against Intel. Also one with unstable cash flow that comes and (mostly) goes with the wind. PE buyers do not have magic bullet patents and technology. They only do selloffs and reorganizations, load up on debt, and exit (preferably fast) with profit for themselves.


and what would be the effect on the stock price?


Well by default if the buyout were occurring now, the effect would be a pop, otherwise current shareholders would have no reason to sell.
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