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

To: Buckwheat who wrote (157012)	4/20/2005 7:38:10 AM
From: niceguy767	Respond to of 275872

"Goodwill is recorded when one pays more than the fair market value for an entity (tangible and intangible assets). So, what did Intel buy from JFTC?" Pre JFTC, it was worth 10% market share in Japan plus as yet undefined other places, last I heard :) "As for myself, I'm worried about what AMD might have to write off when the Spansion IPO takes place. I'm still not convinced that the IPO arrangement will stop the bleeding in AMD's bottom line. I hope I'm wrong on both accounts." I suspect that AMD may take a one-time charge (I'm guessing only as, I'm unfamiliar with the accounting rules behind this type of transaction), and that no matter what that is, just as when TXN decided to cut bait on its home computer business to the tune of some $500M, if memory serves me, will appreciate fairly rapidly and fairly significantly. If I recall correctly, TXN's price increased 50% very shortly after cutting bait and taking a one-time write off of $500M(?). The point I'm making is that it's the "finalization (i.e. completion of the IPO) that will eliminate the flash uncertainty for the AMD investor, and once removed, the investor can then concentrate on the very healthy bottom line of the CPG division and the spectacular revenue and earnings growth potential going forward. The "point of entry" question for me is now, or once the IPO is completed. AMD's CPG division shows so much potential that a dilemma exists whereby, that if I wait, that AMD is going to move up significantly even before the IPO is completed. There is no question in my mind, that AMD will be well into new 53-week high terrain, above $25, within 1 month of the IPO completion.