Joey, <so you mean to tell me if Jerry tells shareholders in March that AMD will report losses for at least the next 2 quarters and he still doesn't know if yields will improve, that the stock will stay at $19?>
Maybe it would be a surprise, but only for you. The MARKET
already knows that there is no way for AMD to be profitable
these current 1-2 quarters under current competition, with
the technology transition and price pressure from Intel's
paranoids.
There might be another truth for you: it is well known
(in certain circles of economic science) that the price
is determined by difference between EXPECTATIONS of
investors and available information. You think you are
operating on information, but you are apparently unfamiliar
with the first part of the formula that drives investment
decisions.
Look what you wrote: <You are severely underestimating
the severity of AMD's problems> You apparently have certain
(unrealistic) expectations (like jokes about normality
of 85% yield, or production ramp of more than 4X per quarter).
OTHER people have DIFFERENT EXPECTATIONS, more realistic.
Therefore, no matter what the news are, the AMD price
remains some constant, as the recent historical data shows.
This is a FACT from the current MARKET.
<$19 may not represent the true state of things (especially
if investors and analysts are believing all the HYPE that
comes from this company). According to the number of AMD
bashers on this thread, not too many people fall into the
category you just outlined. Therefore, your argument is
proven wrong again.
Let me reiterate again my question. If you do not have any
serious AMD position, what is your reason to spend so much
time on AMD thread? Do you fear something from AMD or what?
Why not relax, be with family, go play golf, or just watch
Olimpics? |
