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Politics : Formerly About Advanced Micro Devices

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To: Maxwell who wrote (36714)9/4/1998 10:12:00 AM
From: nihil  Read Replies (2) of 1571405
 
RE: AMD as an investment

Any company not paying dividends from earnings must be considered as speculative. This is one reason that Intel pays a dividend and a few companies sport dividend records dating back 70 years or more. Securities that do not pay cannot be held by fiduciaries subject to prudent man or legal list rules.

Any company losing money as swiftly as AMD and adding debt is a
speculation, pure and simple. Lehman, f.i., forecasts a $.20/sh loss for Q3, or $28.7 million, which if it occurs, Stockman thinks will put AMD into default. Lehman is hopeful (wildly optimistic IMHO) for 1999 ($1.20) and 1999 ($1.60). A 30 PE (you wish!) would put prices up to the 1997 highs. Note that a Lehman employee is a director of AMD, that Lehman makes a market in AMD, and the analyst has a position in AMD.
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