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: Tenchusatsu who wrote (228360)	3/19/2007 5:10:11 PM
From: TimF	Respond to of 275872

Which is fine if a doubling of assets leads to a doubling of earnings, but that's highly in doubt with AMD these days. Its doubtful for most companies at almost any time, but its actually more likely when a company is struggling and might face cash flow problems. When a company has huge cash flow, the additional assets might be hard to put to use, which probably isn't the case for AMD now. Note: I am NOT saying that doubling the shares through a sale will not lower the stock price. I think it will, perhaps by a lot, but the per share price shouldn't fall 50%, and the market cap should rise, because there should be some net benefit from the additional cash.