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

To: Bill Jackson who wrote (50932)	2/25/1999 7:15:00 AM
From: Bruce A. Thompson	Respond to of 1582738

AMD EUOPE: $18.70 <eom>

To: Bill Jackson who wrote (50932)	2/25/1999 9:09:00 AM
From: Burt Masnick	Read Replies (1) \| Respond to of 1582738

AMD made a strategic decision to attack Intel, directly and hard. AMD seems surprised that their are consequences to that attack. AMD chose to attack a financially solid company (they are not) with solid manufacturing expertise (they are not) with profound marketing capability (they don't have such). Is it the obligation of Intel to simply stand by idle while the attack is ongoing. If you were so attacked I don't think you would be passive. AMD may have counted on a passive response and they got an active response. In my view AMD has the business plan from hell. I'm not awed by their management. They have been less than forthcoming about problems on occasion and their stock price now reflects close to a fire sale of their assets. But, as ever, they do have potential. They have moved out on the "you bet your company" limb and they have to hope that neither they themselves nor their competitors (whom they cannot control) get a saw and go to work. If they execute flawlessly for the next three years, they will survive as an independent company with a substantially higher stock price. Those who purchase the stock today think that the odds are good that they will perform nearly flawlessly going forward. In my view, they will stumble somewhere and be taken over by someone with deeper pockets and better judgement, in which case they will, in my view, then become a much more formidable competitor for Intel (unless they are taken over by Compaq or some other boxmaker - hard for boxmakers to buy many chips from direct competitors). Like Bill Clinton, Intel has been very fortunate so far to have inept adversaries. In my view, AMD has behaved very much as an extension of the dreams and plans of Jerry Sanders. In sports terms, his supporters have always been able to say, "Wait till next year". For AMD, it's next year now. Good investing. Burt

To: Bill Jackson who wrote (50932)	2/25/1999 10:27:00 AM
From: Elmer	Read Replies (1) \| Respond to of 1582738

Re: "Elmer, Intel made a strategic decision to cut prices to damage AMD. It is as simple as that. If they were both the same size, selling identical products with identical raw material costs they would both lose profits equally. Since Intel is approx 10 times the size of AMD then for every $ they cost AMD they cost themselves $10. That Intel made $2B per quarter does not affect this logic" Logic? You call that logic? You made up a bunch of nonsense and called it logic. I'll argue with your logic as soon as you come up with some. EP