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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Kevin K. Spurway who wrote (28441)	2/11/1998 7:19:00 PM
From: Investor A	Read Replies (1) \| Respond to of 1572893

I, as a PC user, should welcome IDT become a serious x86 vendor to join AMD and Cyrix to tear apart Intel's monopoly in x86 processor market. Fuchi ... who loves Cyrix's innovations Please support the PC industry & protect consumer interest techstocks.com

To: Kevin K. Spurway who wrote (28441)	2/11/1998 7:57:00 PM
From: Rob S.	Read Replies (2) \| Respond to of 1572893

Cut to whats important; all the talk about performance is pure bull pucky if you are losing money making them. IDT is making over 50% margin today and can't produce enough parts. They have turned down orders for over 500,000 parts per month because they can't produce them - I guess because you won't buy a few PCs with IDT's parts that will ruin that picture. The parts they produce are adding incrementally to the company's sales and earnings and they are ramping production rapidly. They are now producing at the rate of 100k per month and expect to be at 250-300k/mn by the end of next quarter. Who gives a flip about overal industry quantity - AMD produces lots more but then AMD spent over $450 million for Nexgen, and other $200 million designing the K6 and K6 3D, and about $1.4 billion for fab 25. Then they have the stopped plan to build the Dresden, Germany fab that they have already sunk money into. Then AMD is reportedly selling mixed speed grades of the K6 to Compaq for $70, giving away all of their cream of the crop grade in the bargain and selling the 200 Mhz grade for little over $40! Just total that investment up and tell me how many hundreds of millions of parts AMD will have to build at their less than 35% yields to just break even. You are right and I am wrong. Your analysis is unimpeachable so please load up on AMD while it is so cheap. Small little IDTI on the other knows how to build parts that the market is snapping up as fast as they can produce them at +60% yields. They are just not producing the stuff that we uP officiandos want so they are trash and not worth the paper in AMD's bathrooms. Thanks for setting me straight. I guess I'll take my measely +50% returns and cry. -------- I kinda like AMD if they ever get their act toigether I will buy stock in it. But for know, I like the run that IDTI is having - and more good news will break soon.