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To: AK2004 who wrote (160745)	3/1/2002 6:24:58 AM
From: Dave	Read Replies (1) \| Respond to of 186894

Albert, even if the target is 40% the volatility would reduce expectations. For ease some analysts simply subtract risk premium from expectations that is if they expect target to be 40% with risk premium of 20% then they would just report target as 20%. I'm really not following you there. Let's say that "investors", analysts, or the "market" expects copmany b to have 40% margins, what do you think will happen to company b if they announce, say, 30% margins? that could be true yet keep in mind that amd in transition to .13um. Was AMD transitioning in Q4? Also keep in mind that fab 25 will stop production of cpus which also does not sound like amd is capacity constrained To me, this does not make sense. You, technically, close down a fab and sign a foundary contract with someone else. There is a disconnect there. I think the issue became money, AMD did not have enough money to upgrade Fab25. I doubt that flash is more profitable than uPs. I do know if you followed amd that much but last year they recalled all long term bonds. They have a much better line of credit now My comment was regarding the amount of debt AMD has. Instead of AMD's LT debt staying relatively constant, it is increasing. Actually, I took a look and remember, AMD's LT Debt actually has declined YoY b/c they issued stock in exchange to retire the debt. re: And, at 20% market share, AMD is loosing money true, but I am not sure if it is due to cpu or flash, either way you can hardly consider current environment to be normal This is a dumb comment, but if one is loosing money on flash, why convert another fab to produce flash? Just doesn't make sense. Regarding MHz/GHz, yes frequency isn't the end all and be all for performance. I was just commenting that Intel, this time around, was able to break the 2GHz barrier prior to AMD. Last time, AMD was able to break the 1GHz barrier prior to Intel. I didn't know the Hammer would incorporate Video, etc. Anyways, that would be a way for AMD to distinguish its product line from Intel's and could cause ASPs to increase. Regarding "talent" yes I would expect them to leave, I guess the point I was trying to make is that I believe that many were "forced" out and several left AMD in under 3 years.