DAn, dan, dan
Are you conceding what I stated before? As to your cost structure. AMD reports "pro forma", you know what that means? Eliminate for costs, Intels 585M cost for amortization and 75M for purchased R&D and now you have a better "pro forma" estimate for intel.
Next, you are looking at overal revenue figures. Take a look at the Asset side of the B/S. Do you really think AMD can compete in a price war with Intel? If so, you are going to watch taht TIE ratio go down hard. Even AMD's BoD won't be able to save them.
Dan keep on thinking what you want. You know that AMD wants Intel to be strong. If Intel isn't doing well, AMD will be doing worse. Simply put, AMD's capital structure cannot "take" a significant downturn in the economy.
By the way, you never comments on Intel v. AMD's Cash to Debt ratio? Remember, unlike what you were stating previously, Intel can pay all its debt in Cash. On the other hand, AMD has approximately 50 cents on the dollar to pay its debt. If on takes a look at that, AMD investors should be worried if we go into a significant downturn. If so, OCF (Operating Cash Flows) of both companies will crater, but it will affect AMD worse than Intel since AMD is more leveraged. |
