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

To: Windsock who wrote (79088)	5/2/2002 11:30:38 AM
From: chomolungma	Read Replies (1) \| Respond to of 275872

Intel has generated profits quarter after quarter, year after year. AMD has lost money in 6 of the last 7 years. Remember the "Japanese Model" that was all the rage a dozen years ago? The way it worked, supposedly, was that the Japanese manufacturers would sacrifice profits in the near term to build market share. This was heralded as the "new paradigm" for capitalism due to its long range thinking. The problem was that many of those companies NEVER made any money. The Japanese hid behind a booming stock market that supplied easy capital that let these "innovators" run losses. Once that capital spigot was turned off, the lack of profitability was telling and the growth stopped. AMD seems to think that they can continue to run losses and build a strong company. Sooner or later this model will fail because profits are what will provide capital for expansion and development. You can't say, "wait til next season" forever - unless, of course you're the Cubs.

To: Windsock who wrote (79088)	5/2/2002 11:33:58 AM
From: niceguy767	Read Replies (1) \| Respond to of 275872

Windsock: "Intel has generated profits quarter after quarter, year after year. AMD has lost money in 6 of the last 7 years." Two paradigm shifts have/will change(d) the cpu competitive universe: Pradigm Shift #1: Athy, with its outstanding architecture,provided AMD with a ticket to the dance. (AMD competitive across all performance ranges for the 1st time in its history)...(Enterprisers liked Athy's new dance, but needed proof that this "new dance" could not only catch on but establish a trend) Paradigm Shift #2: Opteron with its superior architecture will provide a step up in AMD's competitive edge across all performance ranges...(Enterprisers have had time to evaluate the Athy "new dance" and now realize that this "new dance" is establishing a new trend...Opteron just may cause a "new dance" craze amongst the enterprisers...

To: Windsock who wrote (79088)	5/2/2002 1:29:30 PM
From: Petz	Respond to of 275872

AMD has lost money in 6 of the last 7 years Incorrect. AMD was profitable in 1995 ($216M) and 2000 ($983M). Those profits, $1.2B, are over 3x larger than the combined losses of the five 'bad' years. So don't cry too much for the losses. AMD has much more cash and lower debt than it did 10 years ago, probably because it averaged a profit of $313M over the decade. It is a stronger company, after the worst semiconductor recession in the last 20 years, than it was at it's peak in the 90's. I have no doubt that in the next expansion phase for the semi industry, it will have a profit of over $1.4B ($4.00 per share) in a single year and will attain the critical mass necessary to avoid losses in the next recession. Petz