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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: Joe NYC who wrote (170)	7/7/2000 1:33:02 PM
From: Charles R	Read Replies (1) \| Respond to of 275872

Joe, <You are right. If you include 2 quarters of earnings yielding 100 million cash each, we should be over 1 billion cash.> It is WAY over $100M in cash per quarter. I would say if not for a increase in working capital (among other things accumulation of inventory because there weren't enough motherboards) in Q2 AMD would generate cash in excess of $300 or $400M. As I have said quite a few times on the other thread, Athlon is a HUGE cash flow machine. It is just that enough people haven't noticed it yet. <Time to start a new fab?> Yes. To grow microprocessor market share AMD needs another fab. I expect some cash outlays starting no later than Q4. AMD can either build out Dresden or buy a completed shell from someone if the industry slowdown is significant. Chuck P.S.: Albert, I took a quick look at AMD's Q1 report and unless some debt is hidden, looks like Dresden bank stuff may be less than 500M (AMD should be able to pay it off in Q3 if it chooses to)