AMD Private equity rumors return

[BaronMatrix]

EETimes is reporting that AMD along with several other tech firms are considering privatization.
That would take a lot of pressure off of AMD in terms of their fight with Intel. I have no idea how serious this is, but anything's possible.

Linkage!

 

[gOJDO]

This is probably in part due to starting a price war when 80-90% of your product is totally undercut by the competition.

Even with Woodcrest ramping faster int he server space, the volume is so much less that it won't make up for the P4 firesale.

I expect the losses to continue through Q207. It may be Q307 if they don't EOL NetBust REALLY SOON.

This price war is not stopping AMD from gaining share all over the world so it was a waste of money, first in that they made 55% less last quarter and second in that AMD still got Dell AND a LARGE chinese contract.


I guess when AMD posts their Q3 results i'll have something else to report. I think they have experienced moderate revenue growth but I can't say.

I actually expect AMD to post a profit AGAIN. They still got Dell and a few other LARGE lucrative deals in China. They are selling every chip they mae accordign to the reported shoratges.

Again, why is everything that is negative about Intel cause such rabid responses. I'm sorry their revenue and profits are down, BUT THEY ARE AND IT'S Shocked CPU NEWS.

Intel is on shaky ground right now because of their own actions. In now way did I imply that they would "run out of money" but they will lose a HEFTY part of their war chest by this time next year.

http://forumz.tomshardware.com/hard...e=viewtopic&t=205227&highlight=intel+bankrupt

So, everybody take a cover! Mr. Matrix, the perfect has a vision and he strikes AGAIN!

 

[Julian33]

Haha hilarious!

Love the caption quotes btw :lol:

 

[BaronMatrix]

This is probably in part due to starting a price war when 80-90% of your product is totally undercut by the competition.

Even with Woodcrest ramping faster int he server space, the volume is so much less that it won't make up for the P4 firesale.

I expect the losses to continue through Q207. It may be Q307 if they don't EOL NetBust REALLY SOON.

This price war is not stopping AMD from gaining share all over the world so it was a waste of money, first in that they made 55% less last quarter and second in that AMD still got Dell AND a LARGE chinese contract.


I guess when AMD posts their Q3 results i'll have something else to report. I think they have experienced moderate revenue growth but I can't say.

I actually expect AMD to post a profit AGAIN. They still got Dell and a few other LARGE lucrative deals in China. They are selling every chip they mae accordign to the reported shoratges.

Again, why is everything that is negative about Intel cause such rabid responses. I'm sorry their revenue and profits are down, BUT THEY ARE AND IT'S Shocked CPU NEWS.

Intel is on shaky ground right now because of their own actions. In now way did I imply that they would "run out of money" but they will lose a HEFTY part of their war chest by this time next year.

http://forumz.tomshardware.com/hard...e=viewtopic&t=205227&highlight=intel+bankrupt

So, everybody take a cover! Mr. Matrix, the perfect has a vision and he strikes AGAIN!


Wow, that's was a blast from the past. Obviously the things necessary to stop them from losing money in Q1 were pretty much handled, though it is a little suspicious.

You should have fonud the quote where I said AMD should have stopped dropping prices. I had no idea they would actually cut it by 50-60%.

It does put them in a better price perf position though. It's a heavy cost.

Hey, wait..... What does your post have to do with AMD going private?

 

[gOJDO]

It has to do with you being always right. As you can read from the quotes you were predicting big earnings for AMD because of their insane contracts with China and the Dell deal. Also you predicted a very hard financial situation for Intel. Oh...I almost forgot, the MEGATASKERS success, Quad FX. There should be various mainboards starting from $120, remember?

 

[atraus]

I think you got the link wrong:

AMD, Micron to go private, says report :

http://www.eetimes.com/rss/showArticle.jhtml?articleID=199702472&cid=RSSfeed_eetimes_newsRSS

this is from yesterday.

 

[BaronMatrix]

It has to do with you being always right. As you can read from the quotes you were predicting big earnings for AMD because of their insane contracts with China and the Dell deal. Also you predicted a very hard financial situation for Intel. Oh...I almost forgot, the MEGATASKERS success, Quad FX. There should be various mainboards starting from $120, remember?

I said POST A PROFIT, not big earnings. There you go reading things into my statements to get an laugh from the potential and existing Brood members.

Anger not the poet.

Rspond to the story or go elsewhere. To the other poster, I didn't look at the date, I gt it from AMD Zone this morning. I hadn't seen it and they didn't either.

It could be considered good evidence of privatization, but who knows. Either way as long as there's two CPU manufs we can still


ALL HAIL THE DUOPOLY!!!

 

[BaronMatrix]

I think you got the link wrong:

AMD, Micron to go private, says report :

http://www.eetimes.com/rss/showArticle.jhtml?articleID=199702472&cid=RSSfeed_eetimes_newsRSS

this is from yesterday.

Am I missing something?

 

[gOJDO]

ALL HAIL THE DUOPOLY!!!

Are you saying this when you are angry?
I want to know because I want to learn how can I make you angry. :lol:
It is very interesting :lol: and BTW don't get mad on me.

Next time try not to miss the link, because I thought you are making another great prediction.

 

[TechnologyCoordinator]

The "news" you are quoting is a month and a week old... So has the rumor really resurfaced or was it just re-downloaded?

 

[BaronMatrix]

ALL HAIL THE DUOPOLY!!!

Are you saying this when you are angry?
I want to know because I want to learn how can I make you angry. :lol:
It is very interesting :lol: and BTW don't get mad on me.

Next time try not to miss the link, because I thought you are making another great prediction.

That is an attempt to uphold the principles of the Free Market. If AMD has an X2/Opteron, they have the right to operate without ridiculous tactics from the "market leader" (read:used loosely).

 

[SuperFly03]

So now tactics are ridiculous.... try telling that to military leaders. :roll:

 

[shargrath]

Brood members.

Brood members? :lol: :lol: :lol:

 

[Jakc]

Next time try not to miss the link, because I thought you are making another great prediction.

Maybe if you would actually read a post before trying to flame it, your flames would make sense.

 

[gallag]

The "news" you are quoting is a month and a week old... So has the rumor really resurfaced or was it just re-downloaded?

I am thinking rehash. AMD just banked large I should hope 2.2 billion would get barcelona out the damn door,,, finally :roll:


did they get all 2.2 billion?

 

[Mandrake_]

I believe it was 1.8bn. Less what they had to pay Morgan Stanley.

 

[BaronMatrix]

:roll: WTF do you know?!?

Please try to stay on topic. As I said the link was from AMDZone yesterday. Since it was new I didn't check the date. It would be interesting though as private companies don't have to impress public stock analysts.

 

[SuperFly03]

Damn it Jack not you too... what is with all the ninja avatars?!

I am nit picking here, so don't take it personally, but it is Net Income/ Average Shares outstanding.

-General Reply

Oh guess what people... you may never see net income again in the near future. Accounting powers that be are drafting new financial statements that look more like fund/cost financial statements and as a result the bottom line that we all love will likely disappear. :?

Proposed Financial Statements

 

[gOJDO]

Damn it Jack not you too... what is with all the ninja avatars?!

1) This month is ninja's week.
2) The guy on the avatar is not ninja, but rhasta. :tongue:

 

[SuperFly03]

Damn it Jack not you too... what is with all the ninja avatars?!

1) This month is ninja's week.
2) The guy on the avatar is not ninja, but rhasta. :tongue:

Hmmm I refuse to participate!!! lol

 

[CaptRobertApril]

Hmmm I refuse to participate!!! lol

Come on, Fly! Get with the program. You'll learn to love it!

As per AMD private equity, IMHO it's inevitable. And it will most likely happen in this calendar year. Ol' AMD just can't keep going this way. Can they keep postponing K10 benchys indefinitely?

 

[hognose]

I generally think taking a company private is an excellent move...assuming the appropriate cash reserves are in place or provided as part of the buyout. And In the interest of competition I would love to see AMD go private...and dream of all dreams I'd LOVE to see Intel go private...I know...market cap is too large for that to happen...;-(

My reasoning: It is far too easy for companys to specifically make decisions in an effort to create shareholder value (short term) via increased stock prices. (No I am not saying it is easy for them to drive prices up but rather it is easy to get caught in the trap of making decisions specifically with the intent of driving stock price up (short term).

The problem I have seen is this creates a tail wagging the dog scenario where the company is focused on "Perceived Value" rather that real, long term value to the company. It is unfortunate but public corporations decisions are definitely influenced by how shareholders will respond. Definitely not saying that it is the only factor..but keep in mind "perceived" vs "real" value. And from purely a business management perspective, isn't it optimal to make decisions on the basis of what will benefit the business itself first? Rather than attempting to influence a number that is largely out of your control (stock price)?

IMO Public companies most critical measure is their "Perceived Value". This encompasses their history, future potential, current performance, and countless additional factors... represented by their stock price. While a private company is largely influenced by their core investors expectations of return, which is typically tied more to overall return on investment rather than the short term needs of a fickle market.

That said, Private companies do have their own internal pressures, but they tend to be driven by common measurements of business performance as opposed to the stock of public companies, which is influenced by a number of factors, many of which are not in their control.

Chris

 

[hognose]

ha ha...I shuddered at the idea of writing something that could be construed as supporting the one who is a legend in his own mind....While I don't agree with ...well...just about anything else he has ever said...I do believe there could be some real benefits for AMD if they were to be taken private. Of course there are many pitfalls as well....

Chris

 

[SuperFly03]

I agree.

However the similarity in avatars keeps confusing me. I am simple man and easily confused. 8O

I have no gripe really with the avatar, but when I see 20 ppl with the same one all of a sudden I get confused. I didn't realize it was honor thy Ninja time.

 

[SuperFly03]

If we ever agree on everything the world will come to an end. Engineers and Accountants should never get along. You tell me what you can build with $1M then I summarily say nope you get 300K and have a nice day. lol. :lol: