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

To: Crossy who wrote (40746)	11/3/1998 9:30:00 PM
From: Paul Engel	Read Replies (2) \| Respond to of 1573215

Cross Y - Re: "Alex Brown Upgrade" Careful. Erika Klauer is the Alex Brown analyst. Look at her track record of predicting AMD's performance (she used to be at Smith Barney where she was their AMD analyst): {=====================} Salomon Advanced Micro Devices (AMD STRONG BUY $30) Erika Klauer 52wk hi/lo: 47.37/15.75 FYE: Dec Shs Out: 140.3 mm Consensus EPS: 1997E: $0.26 1998E: $2.15 1999E: $2.25 1996A: ($0.51) 1997E: $0.20 1998E: $3.50 1999E: NA AMD conf call confirms that yield issues adversely impacted the co's ability to mfr 233MHz K6 processors during 3Q. * AMD's problem is a mfg problem, not a demand problem. The co is working aggressively on its yields and should see dramatic improvement by November. Selling the stock now would be premature! * Despite the 3Q set back, our outlook for 98 remains unchanged and our EPS est is still $3.50. We strongly believe that AMD's stock represents a tremendous value at these levels. {=================================} Please note that AMD will miss the $3.50 target for 1998 by at least $3.50 ! Paul

To: Crossy who wrote (40746)	11/3/1998 10:51:00 PM
From: Cirruslvr	Read Replies (2) \| Respond to of 1573215

Crossy- "Letting SGAA, R&D, INTEREST expenses unchanged I arrived at 0.22 per share, so they have some cushion in their prognosis." AMD announced they would be spending $25-30 mil more this Q on R&D. $150 ASP sounds kind of high considering last Q was only $100. $125 sounds like a safe, conservative estimate to me. Remember, 300, 333, and 350MHz K6-2 are still selling strong and they are all at, or below $125 each. Add the increased R&D and conservative ASP to your numbers and see what you get. I like how you posted the scenario with 7 mil processors sold AND an ASP of $150 ;) That will occur 4Q next year perhaps... What does "SGAA" stand for?