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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 231.80

+1.7%

3:59 PM EST

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To: Mani1 who started this subject	6/8/2001 8:21:30 AM
From: niceguy767	Read Replies (1) of 275872

Seven Reasons why AMD price is about to explode to $40's: A. The Past. 1. Over the past 2 years, AMD's financial situation has turned around in remarkable fashion, from a company that rarely could post a quarterly profit to one that is currently approaching its 7th SUCCESSIVE profitable quarter.The latest 3 quarters, including the upcoming q2, of strong earnings have occurred in the weakest of environments in years. AMD's turnaround in the past 2 years is exemplified by its $1 billion (almost) in profit in Y2000, 1/10th of its current $10 billion market cap in an industry where a ratio of 1/25 or 1/50 is not uncommon!!! The Present. 2. AMD's market share is growing fairly rapidly from 17% to 21% and remains in line for 30% over the next year or two. 3. Recently introduced products in the mobile and server spaces have opened up enormous new "market share growth" possibilities for AMD. 4. Revenue growth in Y2001 will be positive according to management with AMD's world leading microprocessor and flash divisions both gaining market share. Just not that many tech companies the scale of AMD that will show positive revenue growth in Y2001. 5. The fed is accomodative and a HUGE amount of cah on the sidelines waiting for the bell to sound the end of the threat of recession. The bell sounded this week with the tax cut and INTC's and AMD's announcement that the PC market has stabilized and the normal growth cycles are about to reassert as opposed to negative macroeconomic factor domination ruling the day. 6. AMD's product lineup and financial benchmarks support a price 2 to 3 times that of INTC. AMD's P/E multiple is about 1/4 or 1/3 of the tech norm and yet AMD is a much stronger company product wise and financially than many of the tech companies currently sporting P/E's 3 to 4 times that of AMD...It is not any deficiency in product lineup or any financial weakness that has held AMD's price below $50 but mainly "negative tech emotion" which has penalized AMD unmercifully, despite its stellar financial performance in such a weak environment...This negative emotion factor has dampened AMD's price hugely and now that a positive horizon is on the radar screen one can expect a rather about turnaround in AMD's price... The Future: 7. AMD is stronger now both product wise and financially than one year ago when trading at $48.50...With the foundation being put in place whereby AMD will be offering competitive product in all four spaces within the microprocessor sector by the end of September (compared with just 1 space in Y2000), huge AMD market share growth potential exists and a 5 year average growth rate of 25% after Y2001 should not be an unreasonable target, particularly when viewed within a context of a rebounding tech environment...There just isn't a better story out there at the moment than the one currently being written by AMD as it continues to bring its technological leadership to the market place with a continuing stream of better price/performing product than its competitors!!!

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