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

To: Maverick who wrote (17002)	10/31/2000 11:29:39 PM
From: Charles R	Respond to of 275872

<Re: Flash spin-off. Eloquently put Charles ! Perhaps, AMD needs Flash to subsidizes MP in tough times. > Thanks. I do think that AMD needed flash before Athlon. But that has changed dramatically since Q4 '99. This quarter I estimate CPUs are going to provide ~400M cash flow for AMD. That's a lotof money! This is rarely understood by most of the investment community. <There is no doubt that the Flash div. by itself is worth AMD's current mkt cap. > Depending on whom you compare with in the flash domain, Flash is worth the entire AMD valuation and then some. <Flash will have $0.5 B rev by 1Q01. Thats $2B run rate. At current cap of $7B, The Flash is at 3.5X Rev. The rest of AMD is free ! What a steal ! > Without going to extremes, it can be argued that Flash is worth upto 2x AMD's current valuation! So, the CPU biz now has a negative value. It is a shame no one sees the 400M or so cash coming from that business this quarter. Chuck