Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 203.76

-1.1%

Nov 21 3:59 PM EST

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To: plantlife who wrote (206337)	7/22/2006 11:09:27 AM
From: Dan3	Read Replies (2) of 275872

Re: A Reasoning behind the ATI Deal One of more hedge fund managers was deeply underwater on sold AMD calls and paid off some news sources to plant this story to tank AMD stock just before options expiration. AMD might or might not want to merge with someone, someday, but they aren't going to do it by paying $5 Billion in cash for anything. The planters of the story emphasized that AMD was draining off all its cash in order to tilt at this windmill. Today's big story would have been that AMD is now half the size of Intel in terms of working capital, has costs 1/7 of Intel's, and is in a far better position to survive a prices war. Instead the news is the AMD is about to piss away 100% of its working capital for nothing. There is often a grain of truth behind a well crafted manipulation - there may be an announcement of more cooperation, or even joint development between AMD and ATI on Monday. But no exhaustion of $5 Billion in cash. The story, at least as it was headlined and written, was planted to manipulate the stock. I will be stunned if it turns out to be anything else.

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