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

To: DRBES who wrote (8395)	9/13/2000 11:14:27 AM
From: Petz	Read Replies (2) \| Respond to of 275872

DRBES, I apologize to the thread, I bought another 100 shares yesterday at 31 5/16, causing today's tumble. ;-/ Petz

To: DRBES who wrote (8395)	9/13/2000 11:28:33 AM
From: AK2004	Read Replies (3) \| Respond to of 275872

DRBES, Jim it seems that pru followed with downgrade of amd from "strong buy" to "accumulate". The reason was is that due to infrastructure support or rather lack of it amd's inventory is growing. They did not downgrade intel. they cut earnings slightly but still very high earnings and low pe. Regards -Albert 10:46am EDT 13-Sep-00 Prudential Securities AMD: DOWNGRADING TO ACCUMULATE FROM STRONG BUY AMD: DOWNGRADING TO ACCUMULATE FROM STRONG BUY R E S E A R C H N O T E S September 13, 2000 Subject: Advanced Micro Devices (AMD-$30 1/2)--NYSE OPINION ========= Current: ACCUMULATE Analysts: Hans C. Mosesmann (650)320-1631 Prior: STRONG BUY Traci Tsuchiguchi (650)320-1639 RISK: High 12-Month Target Price: $35 ======================================================================= Ind. Div.: - Yield: - Shares: 352.4 mil. 52-Wk.Range: 49-8 _______________________________________________________________________ EPS FY Year P/E 1Q 2Q 3Q 4Q Actual 12/99 $ (1.08) N/A $(0.41) $(0.54) $(0.36) $0.21 Current 12/00 $ 2.53E 12.1X $0.57A $0.61A $0.63E $0.73E Current 12/01 $ 2.65E 11.5X $0.62E $0.59E $0.67E $0.77E ======================================================================= - We are downgrading AMD due to what we believe is greater than expected inventory accumulation of Athlons in a very backend loaded quarter. This could be due to mix and motherboard infrastructure issues as AMD ramps the socket A versions (pin grid array package) of Athlon and de-emphasizes the Slot A versions. - We do not believe there is a demand problem in the market and view the PC market as solid. On the margin, this is good news for Intel (INTC-64 7/8, Strong Buy), which continues to be challenged to meet demand at the low end (Celeron) and high end (Xeon). - We are comfortable with our estimates for AMD in Q3 as we expect upside to our Flash memory sales assumptions. However, there is risk to our Q4 number due to the possibility of processor pull-ins from Q4 to Q3. - Downgrading AMD to Accumulate from Strong Buy. Our new price target is $35 from $67. - Our 2001 EPS estimates are under revision.