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

To: eracer who wrote (189540)	3/13/2006 2:59:35 PM
From: AK2004	Respond to of 275872

but if intel pm are to decline significantly we might see low teen..... -AK

To: eracer who wrote (189540)	3/14/2006 12:43:53 AM
From: pgerassi	Respond to of 275872

Eracer: You have big errors in 2). Intel has large losses in Q2 and Q3. Stock holders bail in droves. Price plummets to the single digits. Needed top men, bail because they get better deals elsewhere. In Q4 and Q1/07 ASPs can't be brought back up as the channels are stuffed with too many PCs. Demand just isn't there in the mid and low ranges. It takes a few quarters of Intel writing off their low end stuff before demand gets high enough to stabilize prices. And for the rest of 2007 there is no shortages to help both AMD and Intel boost prices. The problem is that AMD is making money and Intel is cutting fat, divisions and employees to bring costs into line with the new reality, a duopoly. Barrett was fired a long time ago as was anyone else who couldn't accept the duopoly. 1) also has some wrong things. Those millions of unsold CPU are written off at cost. They didn't need to keep production high to make top end stuff to keep up. They cut production to what was needed saving a little money along the way. They let attrition and the selling off of those money losing divisions to pay for the writeoffs as they organize to fight for share in late 2007. Many shareholders lament that this should have been done long ago. Frankly 1 is the better bet, but those clinging to monopolist dreams like 2 for just Q2 only. They are in for a rude awakening. Pete