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Politics : Formerly About Advanced Micro Devices

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To: Paul Engel who wrote (48919)2/8/1999 8:17:00 AM
From: Xpiderman  Read Replies (4) of 1571166
 
Thanks Paul for posting "AMD may be prey for bottom
fishers". mercurycenter.com

There are some problems here: AMD is highly mortgaged company as you indicated ib your previous post (Paul, can you please remind AMD investors how much $$ per share debt AMD has?), so the "booking value" here is almost meaningless. Not to mention AMD's "booking value" is shrinking fast when it report loss quarter after quarter…

Who has the right to claim the AMD's tangible asset when AMD files bankruptcy? The debt holders than the convertible bound holders, actually the AMD stock holders are the last group of people to claim any asset if there is any thing left.

The best strategy is avoid AMD investment. If someone really want deal with AMD, then Short AMD common stock and long their convertible bound. This way you collect fat interest from AMD while using the short position to hedge your risk of default on payment/bankruptcy.
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