Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 231.94

+0.1%

3:59 PM EST

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To: tejek who wrote (48614)	7/22/2001 3:18:06 PM
From: bacchus_ii	Read Replies (3) of 275872

RE:"I don't care how very fixed cost/labor intensive an industry is, when you get into a mess like the one AMD is in the best approach is to shut down the bleeding as quickly as possible. You want to minimize losses and keep your cash intact for the time when the turnaround does come so you can once again pursue market share. Unfortunately, this is not Sanders style and he will push for option 2. That's why the market is selling off the shares. They expect a return to AMD's bleeding days." If AMD maintain 30% market share target, WS may accept we are in different situation this time. AMD have no choice to maintain 30% target. Even at lost. If the bleeding is to long for AMD ... it will be too long for Intel also. As I have written in Message 16038695 "it's a lot easier to maintain profitability at 30% market share than at 50% or 75%. " As soon as 30% is reached then you only work to climb at top of ASP, not at bigger market share. They can achieve that with no new FAB, juste upgrade and maybe outsource a little at IBM later, until profit come back and share price rise and then, use the shelved shares to finance new FAB. Gottfried

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