Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 227.95

+2.0%

3:59 PM EST

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To: AK2004 who wrote (48214)	7/18/2001 5:32:20 PM
From: ptanner	Read Replies (2) of 275872

Re: Analyst wrote "As proof of Intel's current excess capacity, inventories increased to 139 days up from 105 days in the March quarter." I am skeptical of this value. It is quite different than the DSO values (39 days down from 40) reported by Intel's nice financial spreadsheet summary or what I calculate from (total inventory) / (total Q revenue/90 days) = 40.7 up from 36.2. Corresponding value I calculated for AMD was 37 days up sharply from 27 days for prior quarter. And I probably shouldn't include raw materials but AMD doesn't provide this level of detail so I just used the total values for both in my numbers game. FWIW trivia... (Cash + Receivables) / (Current Liability + LT Debt) for AMD has improved substantially over last four quarters (convertible bonds helped a lot) while Intel's ratio has been declining: 3Q00 84% / 199% (AMD/INTC) 4Q00 77% / 188% 1Q01 86% / 167% 2Q01 97% / 158% I need to head back to the INTC thread sometime to followup on a possibly troublesome trend in AMD's numbers which I downplayed last quarter but persisted this quarter: growth in accounts receivable. INTC is in a much better position and or more capable of implementing good cash management (get paid fast, pay slow) and the favorable tax benefits from the salary -> options grant game & stock repurchase. <soapbox>A program fully allowed by current tax code and used by MSFT and others that I have some reservations about.</soapbox> I do support ESOP and options grants to encourage employee comittment/incentive. For all the heat Steve Jobs's massive ($900M ?) options "reward" there hasn't been much notice that they remain are deeply out of the money (granted at $87 presplit). -PT

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