Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 246.76

-0.5%

Nov 14 9:30 AM EST

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To: niceguy767 who wrote (235655)	7/4/2007 9:28:46 AM
From: Dan3	Read Replies (2) of 275872

Re: Anyway, look out below! Could be, but be careful. A good part of AMD's float is owned by S&P 500 widow's and orphan's funds that won't sell as long as AMD is in the S&P 500. Much of the rest is owned by hedge funds that just sell puts, month after month, to excited investors convinced it's about to drop (they used to sell calls). Many of these funds can easily buy all of AMD at $15 per share then make ~5% a month on their money, guaranteed, by selling puts that they know will never be exercised because they (the hedge funds) are they only ones left with shares to sell. It's not crooked, it's just a business, but it could keep AMD at $15 per share right through bankruptcy and dissolution. If the hedge funds want to hold worthless shares of a dissolved company, (and continue to sell puts against those shares) years after the company has ceased to exist, that's their business.

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