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

To: Paul Engel who wrote (60660)	10/28/2001 12:49:24 AM
From: Dan3	Read Replies (2) \| Respond to of 275872

Re: In which earnings reporting period(s) did AMD make these NEXGEN writeoffs? In early 1996 - and the amounts were small since AMD merged with Nexgen, they didn't buy them. AMD did take accounting charges for costs associated with the merger. The only significant cost to shareholders was in the form of dilution, since shares were issued to exchange for Nexgen shares. And that dilution was completely, clearly, honestly, and fully reflected in the all financial statements that followed the merger. There are no other costs from the Nexgen acquisition lurking as goodwill or undepreciated P&E waiting to be expensed. Compare that Intel's nonsensical addition of nearly $6 Billion of "goodwill" to its balance sheet in under two years. I say nonsensical, because goodwill is basically "brand name" value, the difference between the value of an ongoing business and the pieces that make it up. Intel values at $6 billion the name brands of the worthless dot coms it threw money at during its spending frenzy of the past 2 years - and we both know that the value of those brands is closer to $6 million than $6 Billion. Between that "goodwill" and the their $5 Billion valuation increase for a plant that's producing 25% less in revenues, Intel has been hiding the $9.5 Billion in losses they've incurred as they attempt to compete with AMD.