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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Gerald Walls who wrote (67013)	10/19/1998 2:54:00 AM
From: Night Trader	Respond to of 186894

Gerald, AMD is already cash flow positive. Kurlack (no current fan of AMD or MPs generally) has estimates of $413 million cash flow in '98 and $688 million in '99. In fact AMD is selling for only about 4 times next years cash flow. However, as with many technology companies this is not FREE CASH FLOW as most (perhaps all) of it will have to be reinvested or to help pay off AMD's huge debts.

To: Gerald Walls who wrote (67013)	10/19/1998 3:07:00 AM
From: Tenchusatsu	Respond to of 186894

<Have they? This is a just a question, not an attack, but is AMD cash flow positive or are they using carry-forwards and other credits to show a profit? Are they planning to boost advertising expenses to promote their latest Intel killer? Are they planning to boost manufacturing spending to bring it up to full production?> I've heard from the AMD thread that AMD is deferring some of the Q3 sales into Q4, presumably from a fear that Q3 was a little "too good" and that Q4 could be a downer. As for advertising, I don't know what AMD plans to do about that. AMD themselves is going by the assertion that all those "Intel Inside" ads don't mean squat. But AMD will still have trouble trying to build up brand-name recognition with 3D-Now! without more ads. Also, AMD may not be able to spare the money for advertising if it hopes to ramp up its Dresden fab. Speaking of the Dresden Fab 30, that could be AMD's biggest headache in 1999. We all know AMD's track record when it comes to ramping up new processes. That "Mustang" called the K7 isn't going to mean anything if AMD can't crank them out in huge volumes. And AMD can't afford to decrease K6 production when initially ramping up the K7, lest they want to screw over their OEM customers for a quarter or two. Like I said, AMD's business strategy is very high risk. I don't think AMD will go bankrupt, but I don't believe AMD's profits are going to soar, either. Tenchusatsu