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


To: Joe NYC who wrote (198)7/7/2000 2:56:24 PM
From: Charles RRead Replies (1) | Respond to of 275872
 
Joe,

<The loan from or guaranteed by the German government will have extremely attractive terms, so it may be a good idea for AMD to just repay it on schedule.>

Yes and Maybe.

Yes the loan is probably cheap.

Maybe it is not a good idea to carry it on the books even if it is cheap. Taking off the debt makes the balance sheet look stronger, makes you look like a good credit risk and will be helpful the next time AMD has to go back to the capital markets.

And, from an conservative investment view point, one has to find a way to use the cash being generated from operations - I would like to see the debt being paid off before stock-buy backs begin.

Chuck