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

To: Reginald Middleton who wrote (28495)	2/19/1998 9:54:00 AM
From: Yousef	Read Replies (1) \| Respond to of 1583404

Reginald, Re: "I will add my two cents (sense)... AMD is currently worth $8.17." I also agree with you that AMD is currently "over valued" ... I recently posted this estimate for AMD's worth --> Message 3245943 "Re: " Can you please give your opinion as to what parts/products/skill sets of AMD would be potentially of value to a purchaser?" I would be happy to give my opinion ... the most valuable resource that AMD has is its employees. In this age of high technology IC processes, trained, experienced personnel (operators, technicians and engineers) are hard to find. If you ask how much AMD is worth ... I would look to the DEC Fab sale to Intel as a benchmark. DEC sold their Fab and Alpha design to Intel for about 700M$. I would value Fab25 and the K6 design at about that amount of money. If you throw in the SDC process development center and Flash business for another 500M$, then the total price for AMD would come in at about 1.2B$ or $8.50/share. I think potential "suitors" could be other big IC companies like Motorola or TI that could be looking for the Fab space and processing expertise. Both of these companies would re-direct the business away from the K6 and direct competition with Intel. This business model was never going to work. Make It So, Yousef

To: Reginald Middleton who wrote (28495)	2/19/1998 11:32:00 PM
From: Jefferson Prescott Dewhurst	Read Replies (3) \| Respond to of 1583404

Reginald, Do you actually believe that: <<AMD is currently worth $8.17. Under an optimistic scenario, its intrinsic share price is still only worth $12.50, that is 34.60% below yesterday's closing price. AMD, in my opinion is quite overvalued on a risk adjusted basis>> Why don't you do a reality check and work up the book value of a fully equipped ~90,000 sq.ft.,.25 micron semi fab facility, divide by the # shares outstanding and use that as the starting point for asset value of AMD. If you are using your AMD analysis as an example of the value of your product it's very poor salesmanship. When you return to the planet earth try doing basic sanity checks on the numbers you produce before broadcasting them with your signature and reputation attached. Dewy.