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

To: Mark O. Halverson who wrote (228155)	3/15/2007 11:38:07 PM
From: seti	Respond to of 275872

While a 2:1 stock split would send stock price from $14 to $7, doubling the stock float by stock sales would not change the price. It should not be half, but the stock price will surely change. After a secondary offering, the company has more assets, so it will be worth more. However that worth is split among more shares, with the assets/share lower, so the share price will drop. Just as stock buybacks tend to push up the share price, secondary offerings will push it down. Stock dilution is a well known effect. Many governments learn that printing money has big problems.

To: Mark O. Halverson who wrote (228155)	3/15/2007 11:39:19 PM
From: muzosi	Read Replies (1) \| Respond to of 275872

While a 2:1 stock split would send stock price from $14 to $7, doubling the stock float by stock sales would not change the price. let me see here: before sale amd's market value is 555M (stock float) * $14 = $7.77B; after sale it's 2 * 555M * 14 = $15.540B. now they just have to find someone who would pay the extra $7.77B for the new 555M shares.

To: Mark O. Halverson who wrote (228155)	3/15/2007 11:46:08 PM
From: dougSF30	Read Replies (1) \| Respond to of 275872

While a 2:1 stock split would send stock price from $14 to $7, doubling the stock float by stock sales would not change the price. Uh, it sure would. Not in half, but as the extra cash raised by new shares would not be granted the same multiple as the existing business, the share price would need to fall considerably. Said another way: their market cap would not double.

To: Mark O. Halverson who wrote (228155)	3/16/2007 7:33:57 AM
From: Dan3	Read Replies (3) \| Respond to of 275872

Re: While a 2:1 stock split would send stock price from $14 to If the company sells additional shares at the current market price, it should have no effect on the price of the stock. Given that AMD's price is presently under pressure due to capitalization concerns, it might increase the price of the stock. So if AMD sells 500 million shares at $10 each (covering the costs of their next 2 FABS, just like that) AMD's stock price would probably jump. ...and Intel's would collapse, since it would now face years of crappy margins as it continues to attempt to put AMD "back in its box."