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

To: Petz who wrote (34790)	4/4/2001 11:41:41 AM
From: Bill Jackson	Read Replies (1) \| Respond to of 275872

John, Yes, there is a concept that allows you to get out of ruinous contracts or at least make a compromise. Same as what is happeneing in CA right now with dereg power. Force Majeur is usually hurricanes, wars, earthquakes etc, but they can stretch it to fit this if ruin is imminent. Alcatel just wants to break a contract to save money. We had a bunch of that here in Toronto with people buying houses with small downpayments and 6 month clisings in an up market. Between the sale time and the close the house goes up 15% and that is $30-50,000 and of course some of the sellers refused to sell. They were sued for specific performance and lost. Alcatel is just negotiating for a lower price. AMD protests because they will lose $$, money they would have made if they had stayed spot on the Alcatel goods. Alcatel will lose, but will drag it out and out for years. While this happens no-one will be eager to sign contracts for parts with Alcatel. Bill

To: Petz who wrote (34790)	4/4/2001 1:05:32 PM
From: richanfamus	Read Replies (2) \| Respond to of 275872

John - You wrote - "The AMD comment that earnings will not be affected seems to be a strong hint that earnings are OK" The current AMD stock price has factored this in. It should not be an issue. What is an issue is the reduced flash revenue guidance that AMD will give for the next quarter - and the one after that - in light of the Alcatel sales cancellations. Clearly, AMD has more flash capacity than they can sell, else they would merely re-sell the devices targeted for Alcatel and avoid a stinky mess. Instead, they entered into a law suit with a customer - a real sticky issue. Guidance going forward will not be good - and that is what will determine the future stock price. My two cents. Rich