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Politics : Formerly About Advanced Micro Devices

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To: Jefferson Prescott Dewhurst who wrote (28617)2/21/1998 5:37:00 PM
From: Joey Smith  Read Replies (1) of 1572913
 
Dewy, re:THE MARKET doesn't discount hypothetical future events.It
doesn't reflect the fact that a Texas Tornado could level FAB 25.
If either that event or the event you propose were to occur then the
stock price would change to reflect the new state of affairs. THE
MARKET does discount events which have already occurred
such as yield problems, losses for the next 2 Q's and INTEL's
pricing strategy.

I'm not talking about hypothetical future events. Your argument is that the $19 a share takes into account yield problems, losses, etc. And I'm saying it doesn't. So, if AMD makes a public statement about yield problems, future losses, etc. (everything that you assumed is already discounted) you're implying that the stock price should not move, and I'm saying it will. We will see who is right next month, I guess.

joey
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