Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (9290)	1/17/2001 11:25:14 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 10921

That is quite a lot, too bad they did not compare it to last year, but I doubt that last year AMD spent more than $1 B on capex. Where do they get the money? They do not generate 32% margins. If sales increase, they'll need more working capital to support those increases, they generate about $600 MM a year in amortization, and their profits are not going to reach the $700 MM mark, so, they'll need to borrow some $200 MM, unless they want to deplete cash. It is feasible, but quite risky. On the other hand, Sanders has that burning fire in him to beat INTC, and that might be a sufficient drive. Zeev

To: Gottfried who wrote (9290)	1/17/2001 11:41:56 PM
From: Zeev Hed	Read Replies (3) \| Respond to of 10921

Gottfried, I think it may make sense to tighten the seat belts, CMOS expect the current quarter (ending January 31st) to be 40% below last quarter and they see a decline of business through most of 2001 and possibly a bottom late this year or early 2002. biz.yahoo.com I believe they are overly pessimistic, but i would suggest that the equipment sector cannot get back to health until INTC made a bottom, today, while many semi-equip were more than 50% off their bottoms, INTC was within $.5 of its yearly low. Zeev