4.02.2007

An Advanced Micro Devices (AMD) Bankruptcy?

Scary post from Mr Douglas McIntyre. If you don't know who he is, I suggest you google his name. Volume share gains by AMD brought about by its Fab ramp brings with it greater risk. AMD can no longer perform as badly as it did in the past years as a lot more money is involved this time around.

For those who thought that AMD is in a much better position than it was several years ago, you now have to bear in mind that AMD will make bigger loses when it performs badly. There's a monetary limit as to how much creditors are willing to take part and share the risk.

An AMD Bankcruptcy?
http://www.247wallst.com/2007/04/an_advanced_mic.html

"We cannot assure you that we will be able to refinance our debt, sell assets or equity or borrow more funds on terms acceptable to us, if at all." --From Advanced Micro Devices (AMD) 10-K.

Investors often don't pay any attention to the "risks" section of 10-Ks, which may be smart. Who wants to know all of the bad things that could happen to a company? They are even less useful when it is apparent that most of them have a 1% chance, or less, of ever occurring.

AMD currently has $3.6 billion in debt. That would not be so bad, but its business appears to be falling apart as its continues its price war with Intel (INTC). AMD has indicated that it won't make its first quarter numbers, and a number of observers on Wall St. and in the press believe the company will have to raise money quickly. The instrument could be be an offering of convertible preferred shares.

AMD can probably get a private equity firm to put up the capital. Current shareholders might take a hit. The company's stock is now below $12, against a 52-week high of $35.75. AMD currently trades at less than 1.3x sales. Intel trades at over 3.1x.

And, maybe the risk factor about refinancing debt or borrowing money should not even be in the 10-K. It just scares people.
Douglas A. McIntyre

7 comments:

Anonymous said...

mcintyre has been right most often than not...

Bubba said...

Absolutly great site!

Anonymous said...

Oh, come on.

These things are bullshit and you know it.

Nobody is going to bankrupt!!

You Intels piece of shit.

Anonymous said...

hahah another jealous amd fanboi crying over his crappy processor.

Remind me which AMD processor competes with X6800 again.....yep dats what i thought NOTHING!!!!

Roborat, Ph. D. said...

Nobody is going to bankrupt!!

how can you be so sure? looks to me that the chance of it happening increases going forward.
AMD hasn't shown anything to stop it.

Anonymous said...

:)

Jealous?

Yes, I am AMD fanboy, but you are not Intel fanboy, you are monopolist fanboy.

You retarded.

And why would I need faster processor than AMD +3800 overclocked at 2.6Ghz and ATI x1950?

Right now I'm playing C&C 3 without a problem at 1600-1200 resolution.

Anonymous said...

Whoopity doo. You want a candy for that???

Be happy with that crap 3800+ at 2.6Ghz while my c2d is at 3.4ghz spanking the crap out of everything AMD.

With your retarded argument even a celeron paired with a great graphics card can run games fine.......

Go back to your hole and come out when K10 gets released and if it is actually something to brag about.