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

To: kash johal who wrote (34838)	4/4/2001 3:43:27 PM
From: Joe NYC	Respond to of 275872

Kash, Good points. I guess this points to the fact that the flash market is so weak that there was no agreeable outcome between the 2 companies. Alcatel's signing of the contract was a gamble. The gamble was that the contract will be a win for Alcatel, by receiving below the market prices throughout the length of the contract. The contract is turning out to be a liability, a loss. The gamble didn't work and now they are refusing to pay up. Overall, very bad PR for both companies. Joe

To: kash johal who wrote (34838)	4/4/2001 3:48:55 PM
From: AK2004	Read Replies (1) \| Respond to of 275872

Kash well, there is a good news and a there is a bad news :-)) well, could it be that there is a good news and a good news I am one of those who are with blinders, I guess. Here is how I view it: flash demand is down and maybe even worse than I expected but last time we spoke on the topic of hedging you said that there is no possible financial or any other hedge may be created and AMD's contracts would not worse much in low demand environment. But that is AMD's hedge :-)) AMD agreed to sell at lower price ( <=> hedge premium ) to guarantee the sales. I guess AMD's hedge is working...... Regards -Albert