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


To: paarl99 who wrote (221884)1/1/2007 12:03:00 PM
From: niceguy767Respond to of 275872
 
Not really.

A monopolist determines the profit available to the sector and is usually able to squeeze out competition by squeezing the sector profit level.

Unfortuneately for the monopolist, it's competitor is far leaner than it is, and consequently the monopolist ends up as a masochist as far as its efforts at thwarting its much leaner opponent.

Sure AMD pays a price in response to the monopolist's pricing schedule and other highly questionable/illegal tactics put into play by the monopolist, but at the moment, the monopolist is paying a heavy price for its, even with the HUGE legal/illegal(?), market advantages.

Now with the legal vice tightening against INTC's (alleged ;-))illegal monopolistic activities, with tightening vice of its deteriorating financials and with AMD's 65nm ramp now accelerating, the monopolist may be very close to taking its hand off pricing schedule lever to cover off its cost base.

Any firming in pricing schedules produces a sensational upswing in AMD profit margins, price volatility and earnings.