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

To: herb will who wrote (34783)	4/4/2001 10:52:58 AM
From: Bill Jackson	Respond to of 275872

herb, Something is fishy at Alcatel. They would not open this can of contract worms with no reason. Surely they realize this will poison the water with all their other semi contracts in the future. I expect we will see some bad news from Alcatel. Remember the euros are masters of the big lie, look how Phillips and Olivetti and Bull lived in denial and false accounting practices for years until the SHTF. Bill

To: herb will who wrote (34783)	4/4/2001 11:18:18 AM
From: Petz	Respond to of 275872

herb, re;'where did Andreas dream up the twenty bucks, e.g.. AMD is agreeing to $20 when the market is over $40? Yipes!" Andreas was being quite accurate. The spot market prices did go to 2x and 3x the negotiated contract prices back in 2000, but only a small fraction of production ever sells at the spot price. So AMD was really dumb to sell for $20 when they could have gotten $40 on the spot market. NOT! Petz

To: herb will who wrote (34783)	4/4/2001 12:48:53 PM
From: andreas_wonisch	Read Replies (1) \| Respond to of 275872

Herb, Re: Also, where did Andreas dream up the twenty bucks, e.g.. AMD is agreeing to $20 when the market is over $40? Yipes! I believe Petz already answered this quite well. I have to agree with Eric Rohdeutscher from Robertson Stephen on this matter ("Although it is unclear what the longer-term implications are to AMD’s customer relationships, its clear that in the near term, AMD’s agreements provide not only a shield, but also a sword, and AMD is not afraid to wield it."). To sign these long-term agreements last year was an extremely clever decision from AMD, and they have every right to take the advantages in a flash downturn. Andreas