Companies That Management Can't Fix: AMD

Interesting comment from a Wall St analyst:
“There are certain companies that probably cannot be turned around no matter who runs them. They tend to be in industries where macro-economic trends are against them, like the buggy whip business 150 years ago.”

“With its products no longer considered better than those of its larger competitor and severe financial problems, AMD is highly unlikely to do much better than tread water for the foreseeable future.“

While most of the author’s reasoning are “old news”, the news here is that a market analyst, someone who study companies and make opinions based on industry experience, suggests that AMD as a company is screwed for the “foreseeable future”. Any equity firm planning to lend AMD some cash will be aware of the similar risks and in the financial world, the higher the risk, the higher the terms of the loan.


1 comment:

Anonymous said...

Don’t forget the fact that they deliberately lied in their December Analyst meeting. They’re going to have problems raising cash.