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

To: rsi_boy who wrote (65141)	12/7/2001 11:12:48 AM
From: Jim McMannis	Respond to of 275872

RE:"Make sense to cover at this point. Especially sitting on 100 percent gains. I just sold some January covered calls. I am still long-term bullish on AMD but in the meantime I am acting defensive in expectation of a dip" Did you sell your stock or just sell some calls? Jim

To: rsi_boy who wrote (65141)	12/7/2001 11:15:37 AM
From: Jim McMannis	Respond to of 275872

Advanced Micro Shares Rise on 4th-Qtr Sales Forecast (Update3) By Cesca Antonelli Santa Clara, California, Dec. 7 (Bloomberg) -- Advanced Micro Devices Inc. shares rose as much as 15 percent after the second- biggest maker of personal-computer processors and industry leader Intel Corp. raised fourth-quarter sales forecasts because of a surge of holiday buying. Advanced Micro gained $2.15, or 13 percent, to $18.40 in midmorning trading after reaching as high as $18.65. Intel fell 42 cents to $33.74 after rising as much as 34 cents earlier. PC sales this holiday season are shaping up better than expected, analysts and executives say. That means manufacturers are stocking up on processors from Intel and Advanced Micro, which together control 99 percent of the market. The forecasts cheered investors, who said the outlooks may signal a rebound in sales of PCs and devices after a yearlong slump. ``This is the beginning sign of a turn in the business that could continue, barring other unforeseen risks,'' said Graham Tanaka, whose Tanaka Capital Management owns more than 100,000 Intel shares and has $160 million under management. Advanced Micro, based in Sunnyvale, California, said fourth- quarter revenue will climb at least 10 percent from the third quarter's $765.9 million, beating analysts' highest forecasts. Advanced Micro cited ``robust'' demand for its Athlon XP chip and reiterated the firm will return to profit in the second quarter. Intel, based in Santa Clara, California, said sales will be $6.7 billion to $6.9 billion, compared with an October estimate for $6.2 billion to $6.8 billion. Intel hasn't had to cut prices for its newest Pentium 4 chips as much as forecast because of holiday buying, analysts said.

To: rsi_boy who wrote (65141)	12/7/2001 11:45:43 AM
From: Dan3	Read Replies (2) \| Respond to of 275872

Re: Make sense to cover at this point I'm not so sure. The market had priced in Intel crushing AMD, and cut AMD's share price to less than half that of Intel's, and AMD's market cap to less than 3% of Intel's market cap. Now that it's become clear that AMD is continuing to gain in the CPU market, the two stock prices should move back to near equality fairly quickly. This may result in both moving to the $15 to $20 range as it becomes clear that this price war will continue to go on indefinitely, but, IMHO, it is more likely that both will move to $30 to $40 as the economy improves. Either way, dumping AMD at $17 right now isn't a slam-dunk decision.