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

To: Elmer who wrote (94843)	2/23/2000 7:34:00 PM
From: hmaly	Read Replies (2) \| Respond to of 1572345

Elmer re..<<hmaly.. a polite post from you???? Are you feeling ok? >>>>>>> I'm sorry Elmer I guess I wasn't feeling my usual disgusting self today. I will not let it happen again. Re..<<<There is a belief here that Intel will continue to screwup. I think that belief is wrong and AMD investors must consider how AMD will be affected when they are facing a sea of CuMines. AMD doesn't drop prices for no reason.>>>>> Elmer, what I have been trying to show is that AMD isn't as weak as you imply. Just because Intel has 50 times the capitalization doesn,t mean it makes 50 times the money. And that IMO may be Intel's achille heel. Whether you borrow the money or issue shares, you need to pay the lenders or face the consequences. Any company regardless of size needs to manage its resources efficiently. AMD by selling off divisions has become focused, while Intel still doesn't seem to have the sense of direction it needs. Now I know Intel is focused on the Internet. Fine, focus on the internet, not bounce around between desktop ,lowend,highend ,sever, memory,motherboards etc. After suffering from a serious manufacturing capacity in q4 now Intel according to you, is going to flood the market with coppermines. And your worried about AMD and not Intel. I think both companies need to be worried, especially Intel. Why? For one, Intel is selling at 40 times Intel's yr 2000 eps whereas AMD is selling at less than 20 times. AMD's growth rate is likely to be higher throughout 2000 and should propel AMDS STOCK. AMD is a medium cap stock which have been selling hotter than large cap stocks. Flash production accounts for 25% of AMD'S sales, approxomately 4% of Intels, and according to the Prudential report last wk, may be enough to ensure AMD's profitability. Intel also has been losing money outside of their processor division even with sales of shares worth millions. Intel may have to become a meaner leaner fighting machine just like IBM had to do 15 yrs ago. Overproducing coppermines will hurt AMD but I think it will be disastourus for Intel.

To: Elmer who wrote (94843)	2/23/2000 10:21:00 PM
From: Epinephrine	Read Replies (1) \| Respond to of 1572345

RE <AMD investors must consider how AMD will be affected when they are facing a sea of CuMines. AMD doesn't drop prices for no reason.> Elmer, As an AMD long I am actually very happy about AMD's price cuts. They seem to be exactly the appropriate response to the "sea of CuMines" that you predict are coming in that they (As demonstrated by Goutama's frequent posts of data, thank you Goutama) serve to raise the consumer sweet spot and in so doing effectively raise the stakes on the minimum performance that will be acceptable from Intel's "Sea of CuMines" I think that AMD is doing this because they are comfortable with their yields and binsplits and ability to provide high MHz parts in volume. This unspoken confidence is an overwhelming positive in my opinion. Additionally, I think these price cuts are also an attempt to stimulate demand in the face of the imminent Dresden debut next quarter. You say that "AMD investors must consider how AMD will be affected when they are facing a sea of CuMines." I pose that Intel investors must also consider the similar scenario of how Intel will be affected by a sea of high MHz Athlon (particularly Thunderbird) flooding out of Dresden, raising the MHz bar and consumer sweet spot, raising the performance bar (the Thunderbirds coming out of Dresden will have on die cache for an immediate performance jump), and eventually, when Spitfire's come online, diversifying AMD's product portfolio and making them a much more potent competitor in the low end market and the laptop market. (I honestly believe AMD wants to put spitfire in laptops) So I have shared my thoughts with you on AMD's price cuts and the threat of Intel's CuMine flood. I would be very interested to hear your thoughts on AMD's upcoming capacity increase and potential Athlon flood. Thanks, Epinephrine PS: I anticipate that you might say, what does AMD need a flood of Athlons for since they didn't even sell all of their inventory last quarter, to save posts my response to that is that some inventory is not only healthy but necessary and the price cuts are in a large part an attempt to stimulate the demand for those Dresden Athlons. AMD is thinking ahead (I hope)