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

To: TGPTNDR who wrote (41696)	11/17/1998 7:01:00 PM
From: Gopher Broke	Respond to of 1571903

If I was long Intel I would be looking at taking profits now. In fact, I was already too worried about the way the processor market is moving that I did not buy Intel, even when they gave us the news of strong sales last month. So I missed the ramp up. The way I see it, AMD has a foot in the door and that means the profit margins for desktop processors will be forced down. Intel have to be seen to be playing fair and so cannot dump cheap Celerons on the market to kill AMD. So, instead of just setting their own profit margins, Intel will be forced to compete for once. The question is, are they sufficiently lean/mean after having it all their own way for so long? IMO in six months to a year, while the processor market will continue to grow, price competition in the desktop market will force Intel's bottom line down. Of course, the PC sales projections are probably conservative so the diminishing margins may be offset by increased volumes (anyone else having to buy PCs for little Johnny and Jane?). Intel is a hard call. I have some sympathy with Kurlak. I remain, on the other hand, bullish about AMD's prospects.

To: TGPTNDR who wrote (41696)	11/17/1998 7:17:00 PM
From: Petz	Read Replies (1) \| Respond to of 1571903

TGPTNDR, I hedged my AMD position in Jan 20 calls by selling Jan 27.5's yesterday (at 3), recovering my initial investment. I may kick myself if word of an awesome K7 demo leaks out or some other blockbuster, but, technically, the volume has dried up and we'll probably drop to 25 or maybe even 22. On the Fed, the fact that it was only 25 basis points may lead some to believe this is the last drop in rates, just my opinion. Petz