Tony, RE: I used to think I was pretty good with worst case analysis, etc. I'll have to think about this one for a while to come up with some spin he could do.
Let's see, how's this.....(Note to everyone--in case it isn't obvious, this is a joke.)
Note: Advanced Micro Devices (AMD--$24.77)
Compaq is obviously getting desperate with their continuous market share losses to Dell. It is quite apparent, then, that compaq has taken hush money from Intel to prevent further development of the Alpha chip, which most insiders consider clearly superior to Itanium. It is also possible that this is further payback from Intel to Compaq for the DEC lawsuit settlement of a couple of years ago.
Regardless of the source of this agreement, though, it is evident that the clear winner will be AMD. With the competitive threat of Compaq out of the picture, Dell will be much more willing to commit their server line to an exclusive relationship with AMD. With the clear technical superiority of Sledgehammer a given, today's Intel/Compaq deal makes a server agreement between AMD and Dell a slam dunk.
Conclusion: Buy, low risk. Target price: $100
Dang, that was so easy you'd think I was an analyst at one time, huh? |
