Those purchases were made when the stock was riding high and the market
warranted the valuations. The shareholders who paid 39, of course, paid
too much. I think the NexGen purchase will pan out in the long run and
so will the German facility...only time will tell. But I think that
with the speed of technological changes and the fact that more and more
devices are needing more and more of these products and the fact that
AMD has the capability of ramping up production when the need arises
makes this stock reasonable at these levels.
Do you have any concrete and constructive information on why AMD is not
going to make it in the long run? If so, please share that information
with us. We already know that mistakes were made in the past but many
good companies have made many mistakes in the past. The question, now,
is has AMD positioned itself for the future: that is really all that
counts towards the success of the company and, as a result, the success
of our investment.
If this company made nothing but CPU's and peripherals, I would not have
considered it as an investment. What I do like about AMD is the fact
that its production is very diversified. That, coupled with its excess
available production capacity, is what I am counting on. Also, you do
highlight all the negatives of this company, but you fail to mention that
this company has come up with many innovative designs...I think that is
another point to be made about AMD: it does have very good people that
do a very capable job. In the long run, that is going to pay off, but
it is going to take patience on the part of the investors. If anyone
feels that AMD is not positioning itself with an eye to the future, then
this is the wrong investment for them. I am not worried...if the stock
falls too low, I'll just consider that a buying opportunity. My thoughts
are that AMD should be able to come out of its slump, along with most
of the other techs, by next year. If not, I'm willing to go along for
the ride for 2, 5, or even 10 years.
No matter how good a company you invest in, no matter how well it's
doing today, you can never be sure that you are in the right company.
As far as CEO's go, I don't know too much about the one who runs this
company...the only negative stuff I've heard is what you've posted here...
but, if what you say is all true, I don't think it's all that serious:
there are companies that have CEO's that do much worse things than those
you mentioned. |
