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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 231.83+1.7%Jan 16 9:30 AM EST

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To: kash johal who wrote (34834)4/4/2001 4:49:25 PM
From: Neil BoothRead Replies (1) of 275872
 
So in good times - volumes are increased etc prices rise. And in bad times the converse.

Well, I've got good news for you! There's a market for that kind of thing, and it's called the spot market!!

I seem to remember the Chicago Board of Trade coming out with a concept called the "futures contract" between farmers a hundred or so years ago. Why? To mitigate risk for both parties. They would agree to the price today for delivery in the future. Then everyone knows where they stand whether the price goes up OR down. And guess what? It's a great idea, and led to the simply massive derivatives markets that exist today.

Now, what is the point in entering into a forward contract, like AMD and Alcatel did, if as soon as it goes against Alcatel they wimp out? AMD should sue them for every cent they can get, and use that great U.S. legal system to get the mahoosive out-of-all-proportion-and-common-sense damages that are so common over there. Screw Alcatel.

Neil.
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