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


To: survivin who wrote (34845)4/4/2001 5:03:06 PM
From: Neil BoothRead Replies (1) | Respond to of 275872
 
Correct me if I'm wrong, but when AMD was signing a flurry of supply contracts they required a substantial cash downpayment from their customers.

I can quite believe that. The first few deliveries would in effect be a large loan from AMD to the customer. How many banks would do that without collateral?

Collateral is always used in the derivatives markets. I'm not sure it is legal to count it towards your cash balance, though, since it probably held in trust (effectively) and not in AMDs name.

Neil.



To: survivin who wrote (34845)4/4/2001 7:15:49 PM
From: PetzRead Replies (1) | Respond to of 275872
 
survivin -- astute observations, I hadn't thought about the deposits. AMD publishes a cash flow statement in their 10Q. Maybe its in there.

Petz