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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 210.77-4.8%3:59 PM EST
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To: f.simons who wrote (4844)8/13/2000 4:03:10 PM
From: hmalyRead Replies (2) of 275872
 
Frank Re...<<<Well the issue wasn't really whether AMD's pricing makes sense, but rather whether that pricing is causing stock price problems, right or wrong.<<<<<

Frank, your question made no mention of stock price. I believe there is an irrational skittishness concerning all stocks on the market right now. LSI dropped 33% overnight because revenues were light 3% because of delays in supplies. CTXS dropped from 98 to 16 because earnings dropped temporarily 20%. Nokia dropped 25% overnight because of a lower 3rd quarter estimate for product introductions. I feel all of these drops were out of proportion to the crime.

In AMD'S case, a delay in chipsets caused a delay in revenue from 2nd q. to 3-q or 4-q. Big deal, the revenue will eventually be recorded. AMD is still producing a large amount of high mhz chips;(look at the availability on pricewatch) and it is only natural to lower the price to stimulate sales.

Secondly, while you don't say it, your question seems to hint that AMD should try to do things just so wall street is happy. Wall street probably will never be happy for long. I believe any company should take care of themselves first and foremost, wall street should be a secondary consideration. This insane pressure on companies to produce instantly is ruining the long term outlook for many companies. How competitive will our companies be if we short R & D just to satisfy some analyst' expectation. How many great inventions never would have been made because the analysts didn't like it. Who died and made these guys God?
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