Advanced Micro Devices - Moderated (AMD) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 259.65

+2.3%

Jan 23 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: THE WATSONYOUTH who wrote (189147)	3/8/2006 11:19:18 PM
From: grimes	Read Replies (1) of 275872

TWY I seriously doubt available cash is a meaningful constraint on AMD 2006 cap ex. They are prematurely paying debt at relatively low rates (7.5 percent or so IIRC, certainly lower than the likely ROI on new equipment) and could easily raise $ 1 billion via equity and/or lower (than 7.5 %) rate debt, plus they have ~ 1.5 bil cash net of debt on hand. They are also likely generating prodigious amounts of otherwise (than capex)free cash flow. If fitting out Fab 36 at added capital outlay of (say) $ 750 mil could alleviate anticipated production constraints they could do it in a heartbeat. Assuming they are not cash constrained, how quickly could they bring Fab 36 up to the rated capacity of the building envelope (21000wspm IIRC)? and what does this do tho their capacity when it is fully operational?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next