Maverick: re: Takover -I doubt that the situation at AMD is currently
ripe for takeover. The roadmap through 2000 is in place and only
execution(something AMD has lacked in the microprocessor arena
recently, but which they are generally above average at) can stop
them, IMHO.
Yet they need money. The last time I looked, 65% of AMD was owned by
institutions, market consumption went from 30% to over 40% in one
month for over the counter computers, and the rest of the divisions
look to be doing ok, at least.
The company must nearly double their plant investment in the next
three years, IMHO, with nearly 30% required this year. Some money
will come from profits, which should start next quarter(perhaps this?
- I strongly doubt the current quarter loss estimates).
Some bucks come from the German government, but most will have to come
from investors or bond sales.
There will be some dilution.
If AMD dosn't get it done(25u quantity production)by third quarter
'98 I think it will be ripe for takeover), but the roadmap will still
exist, IBM will have 3 mos experience building the chips, and should
know most of the plans. Compaq and the rest of the market will know
how the transition to 25u went(looks to me like ok), and there should
be some bidding.
Thanks for posting interestingly, & giving me the chance to evaluate
the subject in my own mind.
For those who read this missive, sorry to have wasted your time.
tgptndr |
