Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: A. A. LaFountain III who wrote (61013)	6/8/1999 7:43:00 PM
From: kapkan4u	Read Replies (1) \| Respond to of 1572133

Tad, Can you tell us anything about the $200m equity sale that AMD has to finish by June 30th as part of the Dresden financing? In particular I would like to know: 1. Did they renegotiate this in any way or is it still in force? 2. Will these shares be sold in the open market or through private channels? 3. Is it possible that the latest downward pressure on the stock is due to AMD selling in the open market? Anybody else is welcome to contribute any factual information they may have in this matter. Kap.

To: A. A. LaFountain III who wrote (61013)	6/9/1999 2:59:00 AM
From: Amy J	Respond to of 1572133

RE: "re premium and etc." Tad, RE: "The bid was substantially higher than the previous close ...That makes it a premium to the market, by definition." Yes, by textbook definition and evidently for the semi industry, but maybe not from the perspective of the Network industry. Last year it was common knowledge with lawyers, etc., Intel had a reputation for paying too low for companies in MNA deals [MNA deals, not VC deals] Intel had to change this reputation (so companies don't go elsewhere) by bidding at the Network price IMHO. Also, DLGC's PE = 26 (even lower if you subtract cash/sh.) Also, the firm didn't appear to court WS and they delayed MS earnings. RE: "Actually, I think I understood your point...Rising stock prices create opportunity - for those investors who already hold" We're probably talking about different things here. Here's my point: Why did Barnes & Noble IPO their etail biz? - to raise capital. But why did they take the IPO route instead of building their etail biz from their corporate profits? - speed/money. Money from an IPO (in a bull market like this) could possibly have accelerated their new business development quicker than applying corporate profits. Also, the nimbleness of a startup is useful too, etc. (Notice how Alta Vista was encumbered while the startups flew right by? Meanwhile, here comes Ask.com lining up to the IPO runway, with Google.com to follow.) BNBN's competitor, AMZN, raised substantial capital (courtesy of a good biz model/team, new biz opp, Internut craze AND a bull market) and applied the proceeds to further their corporate mission - and Amazon's advancement was amazing in reach/growth. And this was exactly my point: the risk for a company, in a bull market, is even higher when they grossly ignore future business opportunities - because things tend to move even faster in a bull market, including your competition. RE: "As the bull market ages, the "opportunity" is, in my opinion, a well-disguised increase in risk." I agree. And that's why I won't argue too hard for why I think Intel is underrated. Let the eventual earnings tell the story. RE: "reflects my conservatism and does, at times, interfere with... generous profits during a blow-off stage of a run. This is the underlying concept of momentum investing" Fair game. A momentum trader probably wouldn't be buying Intel right now (I'm buying Intel and am not a momentum trader. I tend to bottom-fish, although, yes, Intel's PE is historically at a higher point, but Intel is a value when one considers what's coming out in the pipeline IMHO. But my timeframe of investing is longer than your 1-year rating, so this is where we might differ I believe. When INTC moves, it moves quickly, and guessing exactly when it'll move just isn't something I like to do, so I prefer to just buy on dips and then wait.) RE: "I'm much more comfortable advocating purchase of what I believe to be good value and then waiting for it to be recognized at what I believe are likely to be higher prices." Sounds like you are describing Intel here. RE: "And this is how I feel about AMD now, even on a risk-adjusted basis." While AMD is definitely a value in the spreadsheet, AMD is below my threshold of comfort due to the enormous risk (e.g. potential yield issues, manufacturing limitations.) This sounds like seed-stage risk (but lacking the future long-term prospects IMHO.) RE: 2X revenue being a premium I don't think so, but my perspective comes from the other side of the table, and is influenced by experiences and by an intense focus on new business opportunities, (which is what DLGC is about -- and I think I even got you to agree to the hypothetical, T-bill = 2X revenue, calculation.) RE: sharing my reasoning behind my opinion on DLGC This would be both fun and educational (since debating sharpens the skills and challenges assumptions/opinions.) Possibly later. RE: "it's just that I totally disagree" At any given moment in time, there is a seller for a stock and a buyer for the same stock. Regards, Amy J