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

To: wbmw who wrote (247683)	2/13/2008 9:15:06 AM
From: pgerassi	Read Replies (1) \| Respond to of 275872

Wbmw: Intel used to get $230 ASP in 1997. Heck Intel CPU ASP didn't drop below $200 until 2001. What is it now? $130 or so? What would a CPU ASP rise to $230 do? Add $100 for each CPU Intel sells. They would sell over 60 million of them, if AMD wasn't around. Add $6 billion to both revenue and gross profit for Q4/2007 and you get GMs of 70.2%. That's a 20% GM rise on ASP alone. Taking another look at Fool's, it appears that their gross profit doesn't include depreciation. so the definition of GM changes given who is looking at the numbers. Its debatable as to whether depreciation should be part of cost of sales or taken out after. Pete

To: wbmw who wrote (247683)	2/13/2008 9:35:35 AM
From: pgerassi	Read Replies (1) \| Respond to of 275872

Wbmw: Intel is only in that position because they lied, cheated, bribed, intimidated and extorted. There is a reason for the phrase "ill gotten gains" and why those are stripped away from criminals. Intel didn't have good management, it had poor management that had to resort to those things to stay on top. These are the same managers that gave the stockholders, RAMBUS, internet hosting, Itanium, tv display chips and all of those other losers. Strip away those ill gotten gains and give AMD what part they deserve (some should be returned to the OEMs and a good part returned to the customers), wait two or three years and then look at where Intel is. They'd likely have high debt that they are slowly working heir way out of and the CPUs will be much faster and give more performance per dollar (they will likely be more expensive overall, but do more). The market share will vary between 35 and 65% depending on whose on top on the value and performance metrics. Pete