Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: justaview who wrote (228177)	3/16/2007 10:55:45 AM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 275872

>> If AMD could double the float and sell it at the current price .......... I think the main (and only) enabler/disabler for AMD getting more money is whether their new design (barcelona) is any good, and whether it can be manufactured at reasonable cost. If AMD can make a convincing demo, they will have money thrown at them. That is one reason I don't think AMD is sandbagging on the taskmaster demo. or on the MIA brisbane high bins. There is no way that info could stay secret if they are showing it to potential secondary underwriters. In fact the share price will be strongly correlated with the publicly known info about the design and process.

To: justaview who wrote (228177)	3/17/2007 7:20:41 AM
From: Dan3	Read Replies (4) \| Respond to of 275872

Re: The answer is that they can’t sell them at the current price because doubling the shares, halves the earnings per share. Did you read the post you responded to? That doesn't appear to be the case. Let me simplify it for you. A share of stock represents a "share" of the company, its assets, and its earning potential. If a company with $5 Billion in assets issues $5 Billion in stock to pay for an additional $5 Billion in assets, each stock share continues to "own" the same value in assets. If a company's stock price is depressed due to doubts that it will be able to finance continued expansion, and it then sells new shares of stock that finance continued expansion, the price may go up because the doubt is gone (risk has been removed). By the way, I continue to believe (and have posted for quite a while) that Intel and AMD will both be single digit stocks later this year due to their price war. Intel the company currently costs $110B. AMD, about 1/4 Intel's size, currently costs $8B. I think Intel has further to fall. We'll see. I've been right before and I've been wrong before.