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

To: Gopher Broke who wrote (1651)	7/20/2000 4:23:20 PM
From: dougSF30	Read Replies (1) \| Respond to of 275872

Gopher, I don't think there's any scam... Given the open interest in July calls near or above the money (on the order of 40K), that's 4 MILLION shares worth of exiting going on today and tomorrow, especially as the stock starts down. Remember that Needham (who owns what, 4% of AMD) placed a July collar around his shares, with puts bought around 80 and calls sold at 90 and 95. That's a hell of a lot of downward pressure. Had I fully appreciated the volume of open calls out there, I would have closed out ALL of my July position before the earnings bell, instead of retaining half of it until this dismal morning. Folks taking a short term ride from 75ish to 90 could also be to blame. At any rate, it is nice to see that BofA analyst going beyond targets and recommendations, and actually calling today's dip "inappropriate". I think next week may bring better fortunes. (That's getting to be a bit of an old statement, huh? ) Sunday and Monday (in Dresden) we have the KryoTech reseller meeting goin on with AMD's close participation. Let's hope they announce their 1.4GHz SuperG. Wednesday should bring an announcement from Acer/ALi on their corvette chipset. And (are you listening, AMD?) an announcement of Duron systems from a major OEM (I have a favorite candidate, but don't tell Scumbria) would do wonders next week, as well. You win some, you lose some. The past 2 quarters have exhibited nice behavior in the month following earnings, once the initial few days of selloff passes. Doug

To: Gopher Broke who wrote (1651)	7/20/2000 4:29:40 PM
From: Chung Lee	Respond to of 275872

GB:I am still upset by the stock's behavior. I hope the SEC looks carefully at the trading pattern over the next few days. There is the kind of strength to this manipulation that implies collusion to me. In retrospect, AMD avg daily volume around 4 MLN shares, it simply could not withstand any net sell volume of additional 4 MLN shares, most AMD faithful were so gungho about the prospect of AMD stock price when approaching earning date, expecting a complete blowout, it was tempting to load up on calls and increase the return, because this strategy is so transparent, the big money took advantage of it. Same pattern occured last earning period per my post last Friday, according to that, a silver lining, we might have reached a low the day after earnings. Message 14051216