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

To: Charles R who wrote (21277)	12/1/2000 12:57:04 AM
From: fp_scientist	Read Replies (2) \| Respond to of 275872

Chuck, AMD market cap is $4.8B. They should announce a buy back program if they have any cash available. It is hard to find companies whose market cap is roughly equal to their revenue. Unfortunately, the market can remain irrational for much longer than we can stay solvent. fp

To: Charles R who wrote (21277)	12/1/2000 1:09:24 PM
From: Daniel Schuh	Respond to of 275872

Cool post.

To: Charles R who wrote (21277)	12/1/2000 2:28:54 PM
From: Joe NYC	Read Replies (1) \| Respond to of 275872

Chuck, <If we get a warning from AMD despite all of this, then the share price is justified.> Not sure how you come to the conclusion. What I meant is that the earnings estimates are based on basically no growth in Q4 (.68 vs. .64). No growth QOQ, seasonally adjusted for normally strong Q4 would mean a huge decline from the trend. So an earnings warning would mean a huge reversal from a company that's growning it's earnings to one with shrinking earnings, and would mean that the underlying business is not in a good shape. The current market cap is ~5B. How do you figure the stock price is justified? What I said was based on the assumption that AMD announces that they will fail to meet the earnings estimates. I just went back mentally as to what that would mean about the underlying business - negative growth. Again, this is all hypothetical. Joe