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

To: AK2004 who wrote (191503)	3/31/2006 5:53:46 PM
From: TGPTNDR	Read Replies (2) \| Respond to of 275872

AK, Re: Mosesmann upgraded AMD> LOL!! Our 12-month price target of $10 for AMD shares is based on a 20x multiple to our 2007 EPS estimate of $0.50. Great upgrade. -tgo

To: AK2004 who wrote (191503)	3/31/2006 5:58:01 PM
From: dougSF30	Read Replies (3) \| Respond to of 275872

What a dumb*ss. Figured out a mystery... please! And has the moron not heard of Fab36, with 12" wafers???

To: AK2004 who wrote (191503)	3/31/2006 6:50:21 PM
From: Cravey	Read Replies (1) \| Respond to of 275872

Hans is messed up on so many levels. If you want to understand what is happening in gross margins, you need to go back and look at the Q305 10Q. AMD generously gave all kinds of information in its discussion of expenses and "other" category. To set the stage, AMD on page 25 of Q305 10Q mentioned the loss from other had increased by $51M from Q205 due to an increase of $48M in profit sharing/bonus. They also happily explain on p27 that R&D expenses increased $7M due to the same and SG&A increased by $12M. That means the remaining $29M ($48-7-12) ended up in cost of goods sold. That is an impact of 3% on CPG margins. Unfortunately, the same type of information is not laid out in the 10K. However, given the blow-out quarter in Q4, it is not a stretch to expect much the same or more during that quarter. Looking forward to Q106, the targets are reset, the bonus number goes down. While at the same time the new depreciation numbers for Fab36 start to kick-in. How convenient. Now if they keep blowing out the numbers, the big bonuses stay in but who cares at that point. Hans - more homework for you. Cravey.