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: niceguy767 who wrote (228328)	3/17/2007 5:35:23 PM
From: Dan3	Read Replies (1) \| Respond to of 275872

Re: in retrospect, it looks like AMD paid about 2X what ATI was worth. I begged them not to do it. (here, on this thread) What I'm getting at is that the idea of floating a $2.5B offering of $14 common shares just doesn't fly for me given the current state of financial hardship at AMD. That's why I posted a price of $10 earlier. But even $14 might work. There's a ton of liquidity looking for a home right now. It had been going into CDO/CMO securitized mortgages but that blew up in the last two weeks. An amply funded AMD priced at $10B would look like a steal compared to $110B Intel. A $2.5 billion cash injection (plus existing financing and cash flow) fully funds the New York fab and the Dresden 45nm conversion. Compared to imploding mortgage bonds, it looks like a "safe as houses" investment with a decent chance of a big return. Jeez. I've been safely out of AMD since the ATI buy, now you've got me considering buying back in before it drops below $8. Maybe it won't drop below $8. Or even $10. What would AMD be worth after a $2.5B cash injection traded for a 1/3 increase in the float? Some people bought in below $5 during the last crash - that might be worth waiting for. The overall market is probably going to be crashing for a while as it pukes up all the bad loans of the past couple of years.