Bloomberg didn't pick up "Manufacturing" as an AMD problem from Robertson Stevens
Bloomberg says we fell on demand not manufacturing issues
Here's where we started
briefing.com
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Updated: 27-Nov-00
10:00 -- 11:00 ET (Updated throughout the hour)******
Express Scripts (ESRX) 72 +5/16: Raymond James upgrades pharmacy benefit manager and managed care company to STRONG BUY from BUY.
Advanced Micro (AMD) 19 15/16 -7/8: Robertson Stephens says that AMD is experiencing manufacturing problems with their next-gen chip and will not be shipping in the current quarter as expected; expect price cuts from AMD to be moved forward from January to now to make up market share; also expect Intel (INTC) to announce price cuts soon with the current weak demand environment.
And here's what Bloomberg reported
AMD Shares Fall After Analyst Warns of Weak Demand (Update1)
By Ashley Gross
Sunnyvale, California, Nov. 27 (Bloomberg) -- Shares of Advanced Micro Devices Inc., Intel Corp.'s biggest rival in the microprocessor market, fell 8.7 percent after an analyst cautioned that demand for personal-computer circuit boards remains weak.
Advanced Micro shares fell $1.81 to $19. The shares have gained 31 percent this year, compared with an 11 percent drop in the Philadelphia Semiconductor Index.
Sales in Asia in November showed that demand for so-called motherboards, which contain microprocessors, memory and other chips that run PCs, wasn't ``up in any meaningful way from sales in October,'' wrote Robertson Stephens analyst Eric Rothdeutsch in a report. AMD and Intel, which both make PC chips, might be forced to accelerate price cuts in coming weeks, he said.
Concern over PC sales has been mounting in recent weeks. Intel shares fell earlier this month after Morgan Stanley Dean Witter & Co. analyst Mark Edelstone cut his profit forecast for the No. 1 chipmaker, saying competition was heating up just as PC sales were waning.
Intel shares were unchanged at $43.94 today. They have risen 6.8 percent this year.
`Pure Speculation'
AMD spokesman John Greenagel said Rothdeutsch's report of accelerated price cuts was ``pure speculation.''
``We have a regular plan where we reduce prices on new products to stay competitive,'' Greenagel said. Sunnyvale, California-based AMD will have shipped a record 28 million PC processors by the end of the year and the market is healthy, he said.
``The market continues to grow and we're looking for high- teen growth next year,'' Greenagel said. ``It is a competitive environment, but on the other hand, it's a decent business.''
AMD's chips are incorporated into chipsets manufactured by Taiwan's Via Technologies Inc., the world's No. 2 chipset company, Greenagel said. There's been no slowdown in demand, he said.
``Via is having the best quarter they ever had,'' Greenagel said.
Last week, Santa Clara, California-based Intel began selling its long-awaited Pentium 4 processor that can run at speeds of 1.5- gigahertz, faster than AMD's flagship Athlon chip. Intel is trying to win back market share from AMD, which was able to capture business as Intel failed earlier this year to make enough chips to meet demand.
My take is Robertson Stephens analyst Eric Rothdeutsch never mentioned an AMD manufacturing problem but the Briefing knuckleheads see manufacturing (motherboard) and AMD in the same report and completely screw up the story!
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