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

To: Joey Smith who wrote (28620)	2/21/1998 7:18:00 PM
From: Kevin K. Spurway	Respond to of 1572907

Re: "Your argument is that the $19 a share takes into account yield problems, losses, etc. And I'm saying it doesn't." Actually, the truth is probably somewhere in between. Since yield problems exist now and the market is aware of them, the $19 a share is taking their continued existence into account. But the market undoubtedly also assumes that at some point the problems will be fixed. The timing of the fix, and the extent of the fix (i.e. how high yields get once the fix is in place) will determine whether the stock price rises or falls. Personally, I don't think the market is very optimistic about AMD's ability to solve its yield problems. Therefore, I believe that if AMD does come out a month from now and say their yield problems continue, the downside won't be as bad as you think. I'm guessing the stock will correct to about $14-$15/share if that happens. I'd also hazard a guess that the stock will never see $8 because someone will buy the company before that happens. Kevin