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

To: Jim McMannis who wrote (31882)	4/14/1998 9:50:00 PM
From: AK2004	Respond to of 1574679

Jim, All Solomon confirmed "sell" on AMD 11% bonds - story below Regards -Albert 09:26am EDT 14-Apr-98 Salomon Smith ......... ADVANCED MICRO DEVICES (AMD) (Sr. Sec. Ba1/BB-), Steven Cohen (212) 783-8203 .......... OPINION: We maintain our SELL recommendation on the company's 11.00% Senior Secured Notes at a current level of 109.5 and spread to treasuries of 321 basis points. We see little to make the bonds trade up and with the various issues facing the company, expect the bonds to underperform. AMD goes head to head with Intel in the microprocessor market. With Intel's financial resources, dominant market position and technology leadership, success by AMD will be challenging. Performance of AMD is dependent on successful production of the AMD-K6 microprocessor at the new 0.25-micron technology. Furthermore, success also depends on the company's ability to reduce manufacturing costs more quickly than the inevitable decline in chip selling price. The company's Senior Secured Notes are currently rated Ba1/BB-, however, Moody's and S&P have the bonds under review for possible downgrade. .............