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

To: niceguy767 who wrote (245514)	1/5/2008 1:24:33 PM
From: Sarmad Y. Hermiz	Read Replies (4) \| Respond to of 275872

>> then why the huge INTC negativity over the past 2 weeks? Again, it's impossible to reconcile the current $22.60 with a $0.40 Q4, even with a recession next year. << OK, think back to two years ago; January '06. Intel had just reported record revenues. Price was 26.xx. Next few months INTC dropped to under 17. What was the cause ? Revenue/margin slowdown caused by excess inventory. Fast forward to January '08. Intel will report record revenues, good profits, good margin. So how to bring the stock down ? Scare fund managers into selling by alleging "excess inventory" again. Like yelling fire in a theatre. People just instinctively panic. As far as I know, there is no excess inventory in processors. In fact, one third of AMD's capacity will be shuttered in Q1 and Q2, which are the weak period. Which means there will be a shortage of non-Intel inventory. And it is reasonable to assume that Intel will not wage a price war against itself. So why did the idiot fund managers panic ? Did I forget to say they are idiots ?