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

To: tejek who wrote (52056)	8/22/2001 4:46:54 PM
From: AK2004	Read Replies (1) \| Respond to of 275872

Ted re: However, Intel is still winning the margin game as of last quarter Judging by margins intel indeed got higher cost structure. Considerable percentage of the cost is fixed cost yet the difference in margins is not that big. Considering that intel's asps are higher as well that make intel cost structure even worth. re: Rather than pay for an expensive price war it's all about fixed cost. Amd needs minimum market share to remain competitive and to reduce risk premia on their expected return (higher pe) re: Intel is the likely winner in a market share war. that is not clear. Market put amd at higher risk and hence higher risk premium is associated with the stock. If amd would manage to stand their ground (>=15%) over the next few quarters the situation is likely to change. Regards -Albert

To: tejek who wrote (52056)	8/22/2001 5:00:54 PM
From: niceguy767	Read Replies (2) \| Respond to of 275872

tejek: "It could be that Intel is using creative accounting to get these margins, but as it stands Intel has the profit edge according to the accountants." Take a look at INTC's erosion in marketable securities over the past 2 years, and climbing goodwill...No more reserve available in investments to cover off the steep erosion that has occurred over the past 2 years but masked by creative accounting efforts...With the exception of "reduced tax rate" which was utilized in q2, creative accounting sources have almost run dry...Not looking good for q3 and q4 as a result particularly given the problematic(?) P4...AMD is obviously taking a financial hit in this price war but I have a feeling that INTC's financial hit in the upcoming quarters will be severe compared to AMD's...

To: tejek who wrote (52056)	8/22/2001 5:51:48 PM
From: Milan Shah	Read Replies (2) \| Respond to of 275872

If you look at this data (from marketguide.com), AMD's cash&short-term went down by about $540M last quarter, but their long-term debt went down by about $640M. AMD, as far as I am concerned, was $100M cash-flow positive last quarter. For Intel, their cash&short-term went down by about $700M, but their long-term debt went up by about $225M. In my books, Intel was a $1B cash-flow negative last quarter! If they bleed at this rate, they will not be able to meet payroll in about 2 years time. Milan Intel's Balance Sheet marketguide.com AMD's Balance Sheet marketguide.com