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

To: dougSF30 who wrote (228677)3/21/2007 1:14:18 PM
From: Sarmad Y. HermizRespond to of 275872
 
>> Perhaps retail investors haven't figured out that a convertible means dilution? :)

Retail ? 30 m shares in 3 hours ? $400m ? Can't be retail.

And I can't see how borrowing another $billion can be considered positive. It means another $80m annual interest. To add to $300m current annual interst. Which AMD does not even come close to meeting from operations this year. Some fund manager is just plain insane.



To: dougSF30 who wrote (228677)3/21/2007 7:17:08 PM
From: niceguy767Read Replies (1) | Respond to of 275872
 
A fair bit of interest also! (Just what interest rate will be set depends on what the conversion price is and just how bad margins really are.)

So both an interest charge (albeit less than that on current debt) and dilution and, in all likelihood, preferred creditor status over existing shareholders!


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