Judy,
I still keep my BAY - market is favoring mip-caps. I think BAY is less bomppy than others. Yes, I am out of klac, cymi, and cyrx. Market looks stable now and might have another 100-200 points upside
from here. I am reducing my holding on the rally.
fyi - from AMD thread:
11:10am EDT 18-Aug-97 Sutro & Co. (CB Lee 415-445-8540) AMD
AMD; AMD POSSIBLY CLOSE TO SIGNING IBM AS TIER 1 OEM FOR K6;
STRONG BUY
August 18, 1997
CB Lee 415)445-8540
Susan Crossley 415)445-8311
Advanced Micro Devices (AMD/NYSE - $37 1/2)c, o
AMD Possibly Close to Signing IBM as Tier 1 OEM for K6;
Strong Buy
......
Summary
Our sources suggest that AMD is extremely close to signing IBM
(IBM/NYSE$100 9/16) as its first tier-one OEM for the K6 microprocessor.
Contract negotiations are apparently at an advanced stage, and what remains is
the final language for the actual agreement. While the timing of a possible
formal press release is difficult to gauge, IBM nevertheless hopes to inform
Intel of its decision to use the K6 prior to its issuing a formal press release. The
details of the agreement are sketchy, but we expect it to include the point listed
below.
Key Points
IBM Intends to Buy Bare K6 Dice from AMD. IBM will likely buy
bare dice and use its own C4 flip-chip packaging capacity in order to lower its
cost on each K6 unit. For both IBM and AMD, this strategy makes sense, as
AMD already licenses IBM's C4 ball grid array packaging technology, but it is
capacity limited. In addition, AMD has had limited experience with the C4
technology, and IBM's assistance in this area would be of tremendous help to
AMD.
IBM Intends to Use K6 in All Geographies. We believe IBM will arrange to use
the K6 in all countries, unlike IBM's existing agreement with Cyrix
(CYRX/OTC-$26 7/8- Holdo). The IBM PC Co.
currently markets certain models of the Aptiva bundled with Cyrix's 6x86 only
in Canada and Latin America, and not in other geographies.
K6 Suited for Use in Notebook Products. Like other major tier-one OEMs now
evaluating the K6, IBM likely hopes to use AMD's 0.25-micron version of the
K6 in its notebook products. Operating at 2.1 volts (versus 2.8-2.9 volts for the
0.30-micron version), the 0.25-micron K6 dissipates only about 8-9 watts of
power, which fits well within the power envelope of a notebook.
..........
The information contained herein is obtained from sources we believe to be
reliable, but no representation or guarantee is made as to its
accuracy or completeness.
dee |
