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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 249.66+7.6%3:59 PM EST

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To: Petz who wrote (12409)10/9/2000 9:10:59 PM
From: chic_hearneRead Replies (2) of 275872
 
Re: chic, before you assume that AMD will continue to decline, you might want to check and see if it has EVER traded at less than 35 times its most recent quarterly earnings.

John,

Like I said, P/e's didn't matter on the way up so I don't think they'll matter on the way down.

Ultimately, AMD may have to pay a dividend to stop it's price from going down. Once the dividend hits the 7-10% range, people will support the price if they believe the dividends can be re-occuring. This is the worst case scenario and at this moment does not seem likely to me.

Does this mean I'm sticking my head in the sand and watching AMD whither away my gains?

Enough is enough. I'm long puts and calls. I'm ****VERY**** interested to know if good earnings get ****SOLD**** or ****BOUGHT**** this earnings season. YHOO could really mess things up, so could MOT.

AMD could be at $40 in a week, it could be below $10. We'll see if "good" earnings mean anything in a few days. I'm not getting caught in no sucker bounce either.

One thing to consider. The inventory may be large due to bad infrastructure. If the talking heads decide to make this an issue even if AMD earns $1 a share, they'll have us below $10 by Friday.

chic
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