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

To: Xpiderman who wrote (48920)	2/8/1999 8:28:00 AM
From: Bruce A. Thompson	Respond to of 1571143

AMD EUROPE $17.1972 <EOM>

To: Xpiderman who wrote (48920)	2/8/1999 9:34:00 AM
From: Burt Masnick	Respond to of 1571143

Though I am hardly a fan of AMD's business model (Attack the industry leader so hard that he must take action to counter you - plus bet the ranch on each new chip design with a history of late development completions and process problems) I doubt that AMD will wind up in Chapter 11. The hard assets of AMD are valuable in someone's hands (those Fabs) and someone with both capable management and deep pockets may want to scoop up those fabs. The only possibility of true bankruptcy is that the level of indebtedness rises to overwhelm the value of the FABS. I personally doubt Motorola or IBM or Compaq as white knights. Motorola probably wouldn't want to commit to an x86 processor family and IBM and Compaq couldn't successfully sell chips to their competitors. Perhaps Siemans or some other overseas corporate entity.

To: Xpiderman who wrote (48920)	2/8/1999 1:10:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 1571143

Xy - Re: " The best strategy is avoid AMD investment. If someone really want deal with AMD, then Short AMD common stock and long their convertible bound. This way you collect fat interest from AMD while using the short position to hedge your risk of default on payment/bankruptcy. " Now that's an interesting strategy. Of course, AMD has to pay the interest on that Convertible note - as well as their other BONDS - and the interest expenses may eat up their working capital. Paul

To: Xpiderman who wrote (48920)	2/8/1999 9:09:00 PM
From: greg nus	Read Replies (1) \| Respond to of 1571143

zy, Your even dumber that i thought. If u hedge against the amd bond with an amd stock short u have a pure interst play, and plenty of exposure to the up side potential reduced further by transactional cost of the short. Why would in good consence would u want to be a holder if u thought the bond would default. were default to occure u get no interest, and the bond would fall in price much faster than the underliying stock given it's already compressed value. The princilple reason for an interst bearing investment is preservation of capital, your stratgedy has you looking to loose going in. hence real dumb play. Shurly, if you used your mind for once you might come up with something more productive. keep in tough and let us know when you have.