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Politics : Formerly About Advanced Micro Devices

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To: Valueman who wrote (112473)5/24/2000 5:11:00 PM
From: Goutam  Read Replies (2) of 1571465
 
Valueman,

< Why do a secondary? Why do it now? >

I'm not saying that AMD is going to do a secondary offering. Some Institutions may have dumped AMD stock just to be cautious ahead of tomorrow's meeting. Regarding why do it now, I agree with you. The best time to do it would be after Q3'00 or Q4'00, if AMD expects to show considerable progress in the eps growth.

< Equity is far more expensive than debt leading to a much higher cost of capital. >

No, it's not. The best way to take care of existing debt, and to grow the business is by raising the capital through secondary stock offerings (at the expense of existing share holders).
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