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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: greg nus who wrote (125216)	10/3/2000 4:34:28 PM
From: maceng2	Respond to of 1579770

greg, Interesting analysis. I would assert that "diworseification" is the biggest millstone of them all. TXN found that out and became famous as "roadkill". Many, many, other companies found that out too. Sure, a broad business plan helps against weakness in a single sector but the flip side is... If you take on a loads of different business sectors, you also take on ALL the competition in ALL those sectors too. It's like stepping into a hornets nest. You really have to know what you are doing. Partnerships can help, if they are true partnerships. FOCUS is a big deal IMHO of course, pearly.

To: greg nus who wrote (125216)	10/3/2000 7:40:39 PM
From: Petz	Read Replies (3) \| Respond to of 1579770

greg, I agree with you 90% and thanks for the comments. o AMD's engineering takes credit for the improvement o Intel's top management takes the blame for decline o AMD needs further growth to achieve "critical mass." You defined it in terms of full use of Dresden. I would define it in terms of market share. If AMD has at least 25% market share (20% in $$$, 25% in units), then AMD could withstand a recession without fear of going under; indeed with that much market share, they might even survive a recession without a single losing quarter. If I quibble at all, its with the 8% return on assets number. If AMD makes the expected $2.50 this year, ROA will be 19%. The 8% number is based on trailing 12 months earnings, which still includes the loss in Q3'99. Petz