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

To: John Stopforth who wrote (67134)	1/4/2002 10:45:13 PM
From: niceguy767	Respond to of 275872

John: "I sold 1/5th my position in AMD today which represents 1/2 the shares I bought in September. I couldn't resist the gain. Maybe we will get some good news on flash sales soon." Good to hear from you...I suspect that what we witnessed over the past little while is just the tip of the iceberg as to what is in store for AMD longs in 2002, assuming the economic recovery is now underway, which I certainly do, and an economic recovery that will be led by "lean and mean" companies the likes of AMD... AMD's product lineup and financial strength is wildly superior to that of 2 years ago when AMD ran from $18 to $97.50...The missing ingredient at the moment is economic recovery but that , after 11 fed rate cuts in the past year, would seem to be underway judging by lean AMD inventories...The real key to the recovery in the semi sector is the realisation that one can buy 1 gig additional power today at 50% the cost of just 2 years ago...i.e. a 1.7 gig system today costs 50% of a 700 MHz system of just 2 years ago...That represents a HUGE incentive to upgrade and I suspect that that is the underlying cause of the q4 turnaround that Mr. Sanders described as the most abrupt and strongest turnaround, referring to q4 surging shipments, that he had ever witnessed... 2001 was difficult for most of us, not because of any AMD company shortfalls, but solely resulting from inane fed policy in the face of doubled energy costs...Just as the fed over reacted with interest rate hikes, they may have perhaps overcompensated with the 11 interest rate cuts in which case we just might experience a rebound as powerful as was the decline of the past 1-1/2 years... No company is better positioned than is AMD in the event of economuic recovery...and AMD's new flash product lineup, in any flash recovery will be a world beater...