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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 200.98+1.4%Dec 18 3:59 PM EST

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To: Goutam who wrote (100)7/6/2000 8:15:13 PM
From: Mani1Read Replies (2) of 275872
 
Goutama re <<If they hold on to the bond, what are the advantages in doing so in case of fantastic EPS numbers other than the lower risk of the bond?>>

That is what I was thinking. If the bond has "zero risk", then the holder would not want to accept AMD's offer and sell it back at a slight premium.

Re <<Is there any hidden message regarding the forthcoming EPS release in this AMD announcement?>>

Hmmm..... If Earnings are better than expected, then the risk on the bond would be lower than expected, no?

So AMD wants to set that limit right at the earnings to encourage the holders to turn them in right before the better than expected earnings. If the holder find out about the earnings, they would not want to retire their bond early even if there is a slight premium.

Does this make any sense?

Mani
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