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

To: amic who wrote (48701)	2/5/1999 9:23:00 AM
From: Xpiderman	Respond to of 1572336

Advanced Micro Devices (AMD) sent a shockwave through the chip sector yesterday when the company announced that it could see an operating loss in the first quarter due to pricing pressures... This is the same company that just a couple weeks ago declared that gross margins would improve by 10% in FY99 due to improved product mix... Company's reputation for mismanagement being reinforced by current fiasco... Street will act swiftly and mercilessly in cutting estimates and slashing ratings, as it doesn't like being misled... Regrettably, Briefing.com among those that bought the company line... And while we now must do a 180° regarding our short-term view, longer-term we still think the company is well positioned to exploit the growing demand for cheap PCs... AMD has a solid product and it has won over numerous big name clients from Intel (INTC)... And while the latter might slash prices in effort to win back those clients, Intel unlikely to reverse tide significantly... As always market will overreact to the current bad news, creating a good long-term buying opportunity for patient, risk tolerant investors... That said, it will probably take 9- to 12-months for the company to win back any confidence from the street. Per briefing.com +++++++ Currently, there are at least 9 analysts rated AMD as "hold" or lower rating while about 5 analysts rated AMD as "Buy" . Soon, we will see more downgrades form "Buy" to "Hold", or from "Hold" to "Sell".