Elmer Re..<<<<hmaly, I guess you missed my point. I'll try it from another angle. AMD has an unused fab which they are holding in reserve to do battle with Intel in the microprocessor arena. They will do whatever is necessary to harm Intel including sell at a deep loss. Sustained profitability has never been the goal of AMD's management despite this window of opportunity that could make it possible. If Jerry were replaced or given a lobotomy perhaps AMD could wake up to the fact that the world is desperate for Flash while Athlons are pilling up in AMD warehouses. A flood of CuMines are headed this way and as a concerned AMD investor I think it is in our best interest to go where the sustained profits are. Make Athlons at Fab25 to meet the limited demand and use Fab30 to make the Flash the world is more hungry for.
Sustained profitability is the key to share price appreciation.>>>>>>>>
Elmer re.. Any company that produces 2 - 3 x the amount of chips the market can possibly bear driving down prices below profitability level is crazy. And here we have you telling us in the above post where you say " A flood of coppermines etc." I assume that is based on your banner and that Intel shortly will have 6 fabs producing one million coppermines/wk. for a total of 78 million coppermines/q and 312 million chips/yr. Thats a staggering number when you consider that the market for all computer chips in 2000 is said to be less than 200 million chips. And in addition Intel has 6 more fabs and just bought 2 more; plus according to an earlier post from you Intel has the <<<"checkbook out looking for more.">>> If this flood of coppermines is indeed produced in such vast quantities, it would be financial suicide for both companies.
Secondly there are laws against starting price wars to drive competitors out of business. Why do you feel that Intel has an inalienable right to be the only company on the whole planet which can produce x-86 chips. Almost every business on earth in a capitalist economy has competitors. Its there, it happens, get used to it.
Thirdly you say <<<" AMD has an unused fab which they are holding in reserve to do battle with Intel in the microprocessor arena. They will do whatever is necessary to harm Intel including sell at a deep loss. " >>> By holding a fab in reserve, how in the hell is that hurting Intel you idiot? It's hurting AMD to have spent all that money to build and prepare Dresden. Secondly, wouldn't that be the smartest thing AMD can do, button down the hatches, wait for the flood to be over and then bring on Dresden when necessary to pick up the pieces.
While you claim to have some AMD stock , you probably have 10 x more Intel, plus you do subcontract work there. If I were you, and I actually believed there was such a flood of coppermines coming I would sell Intel first, because AMD may be able by raising mhz, stay somewhat above the fray; and use flash and communications div. to supply profits. Intel is already losing money on all other divisions combined except IBAG division. Throwing that division into loss column could be catastrophic. Also it would seem to me , one of the first expenses Intel would eliminate in a money crunch is hiring outside consultants who are idiots. Where does that leave you?
If such a flood comes I will sell my AMD stock and buy something else until flood subsides. Since everybody likes an underdog and one hell of a lot of people will hate Intel for starting pricewar which Intel can't possibly hope to win, because of FEC, then buy back AMD. |
