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

To: Joe NYC who wrote (2159)	7/25/2000 3:20:09 AM
From: richard surckla	Respond to of 275872

Hey Jozef... Goodnight.

To: Joe NYC who wrote (2159)	7/25/2000 4:39:09 AM
From: Goutam	Read Replies (2) \| Respond to of 275872

Joe, Great article from the Business Week (credits: buklover - Yahoo AMD board). A must read for all AMDers. businessweek.com ___________________ AMD Is Still Scratching for Respect Despite a blowout quarter, Intel's only rival watched its stock go down. Why aren't investors impressed? [...] Intel had reported a middling quarter that would have been a disaster if it hadn't been able to convince analysts to count a multibillion-dollar sale of stocks it owned as recurring income rather than as a one-time gain. Intel's stock rose 3% on the quarterly earnings news. Meanwhile, AMD delivered one of the brightest reports in its 20-year history. The company earned $207 million on $1.2 billion of sales for the second quarter. The sales figure was more than double its take for the same quarter of 1999. Analysts now expect AMD to earn $5.10 per share in 2000, compared to a loss of $2.20 in 1999. More impressively, the company gave no reason for investors to believe that the good times are coming to an end any time soon. "We believe we are on target to double shipments of AMD processors in each of the next two quarters," Chief Operating Officer Hector Ruiz wrote in a statement. SKEPTICAL INVESTORS. Yet, AMD's stock fell 7% on July 20 despite all the good news. By the end of the week, it had slid a additional 7%, to $80.13. Here are some explanations. Rumors of the good quarter drove up the stock prior to Thursday's announcement, so a sell-off was, in some respects, only natural. The last two days of the week also saw general selling in technology stocks, which victimized AMD along with everyone else. But that's not enough to explain the depth of AMD's decline. The sad fact is that nobody who knows the company's past trusts its word. AMD has a long history of promising great things, only to get snagged by technical glitches, poor management, or Intel's relentless rivalry. Investors have gotten used to good news being quickly followed by bad from AMD's Sunnyvale (Calif.) headquarters. The only problem now is that investors are wrong. "People are very skeptical when it comes to AMD," says Chase H&Q analyst Sudeep Balain, who rates the stock a strong buy and has a $150 price target on the $80 stock. "But this time, things really are different, as hard as that is to believe." The difference starts with the Athlon processor, AMD's competitor to Intel's powerful Pentium III line of chips. For the first time, AMD has been able to match Intel technologically with each new generation of the Athlon and has consistently beaten Intel in terms of chip performance. As a result, demand is soaring. AMD expects to ship a total of 28 million chips this year, by far a company record. [...] ___________________________________________________________________ Goutama