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Politics : Formerly About Advanced Micro Devices

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To: Robert G. Bianchi who wrote (25374)10/28/1997 1:30:00 AM
From: Maxwell  Read Replies (1) of 1576150
 
<<AMD seems to have been hit hardest by the Stockmarket correction.
Has their been any additional news to spark AMD's decline? Any other thoughts?>>

In the correction phase, the market will punish stocks in the following order with highest being the hardest.

1) Negative earnings or negative P/E ratio
2) High P/E ratio with moderate growth
3) Medium P/E ratio with moderate growth
4) High P/E ratio with high growth
5) Low P/E with low growth

AMD falls in category 1). INTC falls in category 3). CYMI falls in category 4). APM falls in category 5).

Analysts must be convinced that K6 will make AMD profitable. So far, that vision is not yet materialized. As the market drops, investors take money out of AMD to buy other stocks that have better short term returns. It is a matter of opportunity cost.

Maxwell
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