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

To: Joe NYC who wrote (35228)	4/8/2001 8:03:30 PM
From: kash johal	Read Replies (2) \| Respond to of 275872

Joe, re: grey market The grey market is not for 1 or 2 parts. When OEM folks have excess parts they dump them to the brokers for quick cash. The grey brokers then flog them to retailers and mom/pop shops. So lets say AMD is selling 1.33Ghz parts to Compaq at $140 each. The disti's are selling these for $200 in say 1K pcs and selling for $249 in single units. The grey marekt broker undercuts AMD's distributor and sell the parts for say $180. The reseller then try's to sell these at some discount as well at say $210. The bottom line is that OEM's are not selling all the parts they are getting. And even 1.33's are in oversupply in the channell. Not good news for AMD i'm afraid on volumes, pricing or margins. regards, Kash