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

To: gzubeck who wrote (139216)	11/9/2004 1:14:20 PM
From: dougSF30	Respond to of 275872

gzubeck, convertible debt terms are set at issuance, so the fact that the stock is much higher than the conversion price now is not a negative. The only quibble would be with the extra incentive AMD offered to convert now. Expressing this transaction as "AMD sold $X of stock to retire $Y of debt" is misleading unless you note that the baseline conversion terms ($7.37/sh) were established when the debt was issued, and thus, everyone already expects these sorts of transactions, and AMD already expresses EPS on the basis of these notes being fully converted. Doug As for Intel, they are already in hot water with their investors, and have little room to play games through increasing their own losses.