Paul - RE: "I may buy back in at $12 - or maybe $10."
I think it can go even lower than that. $10 is $20 presplit, and back in 1998 and 1999 the stock went down to $13 - $15 presplit
They want to build a new fab? Gotta borrow LOTS of money. Some people said AMD's long term debt went down recently, but it is gonna go back up significantly when they borrow money to get a new fab started. And with HUGE losses coming, their S&P debt rating may be lowered, further raising the cost to borrow money to build a new fab.
Their cash will slowly wither away as they give away, err, "sell" DUDon for $30, losing money further weakening AMD's balance sheet.
August 26, the day of Intel's next big price drop, will be the day the walls at 1 AMD Place really begin to crumble. Good thing they don't own the building, eh! Those price drops are the knockout blow that will leave AMD dazed and confused wondering what smacked them upside the head.
Intel's decision to fill the gaps between the original plan of 1.5Ghz, 1.7GHz, and 2.0GHz is brilliant. AMD will be left behind in the dust, gasping for air. Also, bringing in Tualatin Celerons will make the DUDon sell for even less. ASPs gonna get uglier.
I'll tell you one thing, it sure is nice watching AMD fall into another black hole and not being a part of it for a change. I used to be like some on this thread, in denial and thinking AMD may be able to pull through somehow when it is clear to a non-Droid that bad times are coming.
But, hey, a $500 share price is just around the corner! |
