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To: Mary Cluney who wrote (65974)	10/7/1998 4:11:00 PM
From: Gerald Walls	Read Replies (2) \| Respond to of 186894

Analysts seem to believe that AMD can't deliver, both profit-wise and product-wise: Advanced Micro Tumbles Amid Analysts' Bearish View dailynews.yahoo.com ''They shipped a tremendous amount of product in the quarter,'' said one technology trader. ''Is that as good as it gets?...This was AMD's quarter to shine. Going forward, it's always the same story with AMD: they really don't make enough money.'' Advanced Micro's profit was its first in four quarters. and But Kumar said in a note to clients ''We believe that the low yields at 400 megahertz will push out the launch date of this product from the fourth quarter to the first quarter.'' Kumar said he believes that Advanced Micro is currently experiencing manufacturing yields of less than one percent on this new K6-2 chip -- meaning that less than one percent are shippable to customers.

To: Mary Cluney who wrote (65974)	10/7/1998 4:39:00 PM
From: Jeff Fox	Read Replies (3) \| Respond to of 186894

Mary, re:Stock values - equity Sorry, your right. I rarely ever succumb to these temptations - just that this "straight line" was just too irresistible. Jim's post are valuable, considered and mostly fair minded, although his faith appears to be somewhat misplaced. To Jim: Yes, today's attack on AMD share price was not warranted by today's news. AMD's prospects did not change today, at least not dramatically downward. The AMD situation is risky and complex. Jerry has been waging this phobic war for some time, and apparently for a little while longer. I think what changed today was the markets tolerance for risk. As for my previous post, I intended to highlight that market share prices ultimately reflects the value of a company's assets as owned by its shareholders. Equity increases, ie earnings, provide funds for growth without increasing debt. Any company that increases debt adds leverage that adds uncertainty to the future equity. With AMD spending at such a high rate compared to its equity it is very, very questionable to whether AMD will ever be able to generate sufficient earnings to provide needed returns to support this rapidly increasing debt. Jeff