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

To: Goutam who wrote (112482)	5/24/2000 5:20:00 PM
From: tejek	Read Replies (1) \| Respond to of 1571540

I'm not saying that AMD is going to do a secondary offering. Some Institutions may have dumped AMD stock just to be cautious ahead of tomorrow's meeting. Goutama, What meeting tomorrow? ted

To: Goutam who wrote (112482)	5/24/2000 5:40:00 PM
From: Valueman	Respond to of 1571540

No, it's not. The best way to take care of existing debt, and to grow the business is by raising the capital through secondary stock offerings (at the expense of existing share holders). On this, you are quite wrong. Equity is more expensive than debt as far as cost of capital goes. This is a well known fact. If cash flows can service debt and provide free cash, there is absolutely no reason to dilute existing shareholders with an equity offering.