To: John Graybill who wrote (2945 ) 7/10/2000 3:53:33 PM From: chic_hearne Respond to John, The SOX and Naz have collapsed under their own weight at the end of trading today. AMD was doing fine when the Naz was at even, as well as the SOX was. Now the Naz has tanked 50 points late in the day dragging everything else down with it. 11 SOX stocks in the red. There's a ton of short interest in AMD and I suspect they are all going to be rushing to the door at the same time with no sellers in sight. We're going to see a 10++ point breakout day before their earnings next Wednesday. Upside potential is huge because many ANALysts have been burned by AMD in the past so they have set expectations low so they don't look bad again. This in turn has lead to a large amount of shorts that have been fead disinformation and have no idea what they've gotten themselves into. My only fear is a general SOX breakdown because the other 15 stocks are severely overvalued. This is the first accurate report on the state of AMD's business I've seen since I started buying calls back in the high 30's. From BoA today:significant upsides to our 2001 estimate. As opposed to the $6.2 billion in revenues 51% gross margin and $6.25 per share we're now modeling, we can easily envisage revenues pushing $7 billion, gross margins 60% and earnings double digit - after tax.
