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Politics : Formerly About Advanced Micro Devices

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To: Kevin K. Spurway who wrote (63230)	6/24/1999 7:08:00 PM
From: Petz	Read Replies (2) of 1572196

Some important information re:K6-2 inventory has not been revealed. Namely, at what price, X, ($10 < X < $50) are the 2.Y million chips being valued? (Y is also unknown) Basically, when EPS (sic) are released, we should be able to calculate X from the increase in inventory valuation, since last quarter there was probably only a couple 100K of chips in inventory. Here's the point. If AMD is valuing the inventory at $10-$20 per chip, and they are sold in Q3 for $30 - $40, they could realize a profit of $50M on the sale of this inventory. Heck, even a Cyrix MII-300 fetches $25 to NSM. After looking at pricewatch and thechipmerchant.com, I believe AMD is getting about $36 for the K6-2-350 right now. (The vendors on top of pricewatch list limit you to 1 CPU or charge $90 to ship ten via UPS Ground. Interestingly, all grades below or above 350MHz are way above $36). However, if AMD is valuing them at $35+ in inventory, they are setting themselves up for a fall. Petz

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