Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Cirruslvr who wrote (112468)	5/24/2000 4:38:00 PM
From: Goutam	Read Replies (3) of 1571774

Cirruslvr, I find the thought expressed in this post on Yahoo AMD board more reasonable in explaining the decline in the AMD share price - ______________________________________________________________________ messages.yahoo.com just my thoughts and wild guess by: amd_prince Could it be that word of a secondary offering to be announced tomorrow has leaked to the Street and the stock took a beating in the last few days because of that? I cannot make any sense of AMD's action today. I thought we were going down because we had the market flu but today the NAS rebounded nicely with good volume, the SOX and most semis were up! Secondaries to repay debt have short-term bad effects but they are good for the long term health of the company. Unfortunately, if my wild guess is true, the stock will not go up for 4-6 weeks until the secondary is priced. Plenty of institutional buyers out there, I'm sure. But under general unstable market conditions, buyers of the secondary will not pay a penny above the market price at the day/week the pricing is done. Thus, interested buyers may be happy to see it go down NOW and stay down until the pricing is done. Those not interested in buying the secondary dump because they know the stock will not go any place for 4-6 weeks. It becomes a self-fulfilling prophecy ... Of course, it all depends on the size of the offering but I'm assuming 25 MM shares at $70 will pay AMD's debt. I don't have the actual figure handy. This is the only "theory" I can put together to explain AMD's behavior the last 3 days. If there is a secondary, stock will be stuck for several weeks ... probably below 78 which is now resistance. Just my thoughts and MHO. ______________________________________________________________________ Could it be that some Institutions started selling AMD in some kind of anticipation of AMD secondary offering? Goutama

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