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

To: Pravin Kamdar who wrote (84720)	7/12/2002 10:54:05 AM
From: wanna_bmw	Respond to of 275872

Pravin, Re: [From CSFB]"AMD is shifting its near-term strategy towards pursuing mkt-share at the expense of profitability" What do they mean *near-term*? Hasn't this been AMD's strategy from day-1? wbmw

To: Pravin Kamdar who wrote (84720)	7/12/2002 10:58:58 AM
From: heatsinker2	Read Replies (2) \| Respond to of 275872

Pravin- AMD gets downgraded and the stock moves up. Someone likes AMD. CSFB downgrades to HOLD from Buy based on the belief that profitability of the Flash group is unlikely near-term; believes AMD is shifting its near-term strategy towards pursuing mkt-share at the expense of profitability, and is experiencing problems with MirrorBit that can lead to long-term profitability issues and loss of competitive advantage. Changes FY02 rev/EPS ests to $3.1 bln/($1.17) from $3.0 bln/($1.14) and FY03 to $3.9 bln/($0.53) from $3.5 bln/($0.31), and cuts price target to $10 from $12. Who is the CSFB analyst? His comment that AMD is pursuing a market share strategy seems bizarre, given that AMD needs cash. Also, if mirrorbit is experiencing some startup problems, it's a big jump to say that this will have serious long term consequences.

To: Pravin Kamdar who wrote (84720)	7/12/2002 11:13:46 AM
From: Joe NYC	Respond to of 275872

Pravin, Stock is behaving well, considering the downgrade. Anyway, I took this opportunity and sold more shares and some August 10 calls. I reduced my AMD position to something I will be more comfortable with during the earnings week. If the reaction is bad and stock drops below $8.00, I will probably buy my shares back. Joe

To: Pravin Kamdar who wrote (84720)	7/12/2002 12:02:29 PM
From: tejek	Read Replies (1) \| Respond to of 275872

CSFB believes that AMD is having problems with MirrorBit: finance.yahoo.com I thought that analysts were not supposed to be given non public material information. Pravin, first I don't know what you mean by "non public mat. info.". In any case, I don't know of a law that prohibits an analyst from commenting on problems with testing and/or production of a new product. They certainly comment regularly on inventory in the channels which can't be based on much more than anecdotal evidence. I don't think they literally count the inventory in the channel in order to establish their opinion. So if they get wind from a reliable source that AMD is having problems with Mirrorbit, I am not surprised that they would disclose that information. Having said that, I think the thing to watch is how the stock reacts to all this bad news......and to date, its done a much better job of it than INTC shares. In fact, I would say the stock has been unbelievably strong....which seems to give credence to the comments made by Prudential a couple of weeks ago. FWIW. ted