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

To: kapkan4u who wrote (61841)	6/15/1999 1:33:00 PM
From: Paul Engel	Respond to of 1572580

Kal Kan - Re: ". Hell, even if they screw-up the manufacturing they can go to a foundry or get acquired which will bring between the book value of $12 a share and $40. " How wrong you are. How many foundries are producing 600 MHz CPUs today? Paul

To: kapkan4u who wrote (61841)	6/15/1999 1:58:00 PM
From: Burt Masnick	Read Replies (1) \| Respond to of 1572580

Re:"Hell, even if they screw-up the manufacturing they can go to a foundry or get acquired which will bring between the book value of $12 a share and $40." If they screw up manufacturing I am far less sanguine about their future. They will have large and growing debt, another black eye and the emnity of the boxmakers they will have screwed. Yes, they will probably be sold, but more likely at firesale prices since their alternatives will be few and they will be in reasonably dire financial straits. They will also be confirming that their business plan had high risk (as did those of Cyrix/NSM and IDT), something that rational buyers don't like to pay a premium for. Oh, yes - that will be an interesting search finding a foundry that can produce these suckers with good yields, good volume and good bin splits. Their only hope is excellent execution in their own foundries on the production side (both in the states to get started and in Dresden to start making some profits). If that is pulled off, they will have pulled off their gamble and the shareholders will be duly rewarded. Regards, Burt