Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 203.14

-0.8%

Jan 9 9:30 AM EST

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To: justaview who wrote (228177)	3/17/2007 7:20:41 AM
From: Dan3	Read Replies (4) of 275872

Re: The answer is that they can’t sell them at the current price because doubling the shares, halves the earnings per share. Did you read the post you responded to? That doesn't appear to be the case. Let me simplify it for you. A share of stock represents a "share" of the company, its assets, and its earning potential. If a company with $5 Billion in assets issues $5 Billion in stock to pay for an additional $5 Billion in assets, each stock share continues to "own" the same value in assets. If a company's stock price is depressed due to doubts that it will be able to finance continued expansion, and it then sells new shares of stock that finance continued expansion, the price may go up because the doubt is gone (risk has been removed). By the way, I continue to believe (and have posted for quite a while) that Intel and AMD will both be single digit stocks later this year due to their price war. Intel the company currently costs $110B. AMD, about 1/4 Intel's size, currently costs $8B. I think Intel has further to fall. We'll see. I've been right before and I've been wrong before.

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