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Bad news day for AMD

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Last response: in CPUs
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June 19, 2002 8:51:49 AM

Cautionary Statement

This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements in this release involve risks and uncertainty that could cause actual results to differ materially from current expectations. Risks include the possibility that global business and economic conditions will worsen resulting in lower than currently expected sales in the second quarter of 2002; that Intel Corporation pricing, marketing programs, product bundling, new product introductions or other activities targeting the company's processor business will prevent attainment of the company's current PC processor sales plans; that demand for personal computers and, in turn, demand for the company's PC processors will be lower than currently expected; that the company will not continue to be successful in ramping production of the company's AMD Athlon XP processors on 130-nanometer technology in Fab 30 in Dresden, Germany, on the current schedule; that demand for the company's flash memory products will be lower than currently expected; that the company will not achieve substantial sequential growth in sales of flash memory devices in the current quarter; that the company will not be able to maintain market share in the PC processor market and gain flash memory market share in the cellular telephone sector; and that the company may not achieve its current product introduction schedules. We urge investors to review in detail the risks and uncertainties in the company's Securities and Exchange Commission filings, including but not limited to the report on Form 10-K for the year ended December 30, 2001 and the report on Form 10-Q for the quarter ended March 31, 2002.

<A HREF="http://biz.yahoo.com/bw/020618/180391_1.html" target="_new">Official AMD statement</A>

<A HREF="http://biz.yahoo.com/rb/020618/tech_amd_outlook_4.html" target="_new">Reuters</A>

Bloomberg will have article released today too, they have the numbers on how bad the damage is, Bummer I could not have screen captured the graphs shown so I can spare you the details untill bloomberg report comes out.

This guy thinks this <A HREF="http://biz.yahoo.com/oo/020618/75228.html" target="_new">will not raise any eyebroys</A>

Read the above caution carefully, you have 1 week to hear the broadcast and cry.

I was warned earlier today to sell if I had any stock.

You are limited to what your mind can perceive.

More about : bad news day amd

June 19, 2002 9:50:58 AM

dam
June 19, 2002 10:47:51 AM

boo hoo hoo *yawn* hoo hoo hoo

<font color=blue>All religions are true, for a given value of 'true' - Terry Pratchett.</font color=blue>
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June 19, 2002 11:01:28 AM

Not good not good at all. I hope that they will recover from it and still stay in the running. I like the competition between Intel and AMD I was healthy for the industry.

Hey Melty no imput whats going on????
He must be so delighted that hes still hasnt stop flogging him self.

I wonder if intel will drop there prices even lower just to finish tham off?????? i hope not.

:cool: <font color=blue><b>BAD ASS BOYS OVERCLOCK BAD ASS TOYS</b></font color=blue> :cool:
June 19, 2002 4:15:21 PM

Quote:
I like the competition between Intel and AMD I was healthy for the industry.


Me too, It's also healty for consumers. Cheap Chips, comming soon.

KG

"Artificial intelligence is no match for natural stupidity." - Sarah Chambers
June 19, 2002 4:22:14 PM

Intel also released similar warning about a week ago. Their stock fell about 18%. I wonder what's will this announcement do for AMD's stock.

When Intel announced the warning I thought AMD was stilling market share from Intel and that's why Intel will not make enough money, but my guess was wrong. Oh well I hope this slowdown ends soon so these company can start making and spending more money in R&D which will bring us better products.

KG

"Artificial intelligence is no match for natural stupidity." - Sarah Chambers
June 19, 2002 4:44:45 PM

Well based on current reports, AMD will lose 30% or more.

looking for more info now.

You are limited to what your mind can perceive.
June 19, 2002 7:09:40 PM

Wouldn't suprise me either if it was 20-30%. AMD is smaller than Intel, meaning that the same % dropoff in sales hurts them more in the long run than Intel. AMD also has other areas that it's divested into that aren't doing as well as the CPU sector.

Hammer might help them a bit by giving them a shot at having a good motherboard chipset out with their new core. Depends on what Via and SIS come up with cost wise and performance wise, but AMD has a leg up because they're developing the core along with the chipset.

It can be said that smoking is one of the leading cause of statistics.
June 19, 2002 9:04:47 PM

So far it's down about 16%. Not as much as the Intel warning, but I think that was a little over reacted to. Not really bad warning merely lowered the revenue forcast from 6.5-7.0Billion to 6.2-6.5Billion I believe. Anyone read the the article that the Hammer could be put off til this December?

What's the deal with lampshades, I mean it's a lamp, why would you want a shade? :smile:
June 19, 2002 9:28:38 PM

Excellent time to buy

But follow your own instincts, as that is just my feeling

I may wait for just a little more drop...but maybe not...will have to do some more research.

So much for sleep!

I'm not really human, I just play one on TV
June 19, 2002 10:56:06 PM

The truth is that AMD will release a great product within the next 6-12 month. Somebody could be speculating in this, for example by making the stock-holders believe that now is a time to sell, and then when the stock hits the bottom, the same people who recommended to sell, will be buying, making great profits.

<i>/Copenhagen - Clockspeed will make the difference... in the end</i> :cool:
June 19, 2002 11:17:43 PM

Quote:
Somebody could be speculating in this, for example by making the stock-holders believe that now is a time to sell, and then when the stock hits the bottom, the same people who recommended to sell, will be buying, making great profits.

The only people who have the ability to waver large share-holder positions are the company officials and brokerages. The brokerages are not allowed to do this kind of thing and that's one of the reasons brokers have had to pay large fines to the SEC. Second, the company officials aren't allowed to do this either, cause it's called "market manipulation" I believe and it is illegal.

What's the deal with lampshades, I mean it's a lamp, why would you want a shade? :smile:
a b à CPUs
June 20, 2002 3:22:53 AM

They aren't allowed to do it, but you still have to kind of wonder why they recommend selling AMD stock when it's at a low point in its cycle?

What's the frequency, Kenneth?
June 20, 2002 4:46:00 PM

You're assuming it's bottemed out. It may be down 20% from what it was several days ago, doesn't mean it won't drop another 10% here, and 10% there.

I've been watching stocks for a few years, and my father retired to trade for a living. We've seen (And invested) in stocks that split 4 times and went from 50 to 150 besides the split (so, 50 to 600 in 18 months, not to bad), and I've seen stocks that I thought bottemed out at 20 go as low as 8. The people that make stock recomendations don't know everything, but they tend to know more than most about how the market will deal with a company.

It can be said that smoking is one of the leading cause of statistics.
a b à CPUs
June 20, 2002 6:24:30 PM

Well, if you follow AMD's cycles over a period of several years, it would seem to be about the proper time for it to be at the bottom. Tech stocks don't follow the normal rules that investment brokers normally do. They are more greatly affected by new product release excitement than by PE ratios. Like when AMD spent all that money to develope the Athlon, their stock shot down. When AMD released the Athlon, their stock shot back up.
Of course the overall economy being strong or weak can fuel or moderate the excitement. Most people said I was wrong the last couple times I said "Buy AMD", and both times their was a significant climb. In fact, the first time I said "Buy AMD at 16" it droped even more (to 14 I believe) before climbing to over 80, then splitting.

What's the frequency, Kenneth?
June 20, 2002 7:39:44 PM

Stock brokers only care about profits. So when any company shells out the big bucks to pay for R&D, they'll obviously not be happy. When Athlon was released, AMD had ended their R&D on that product and therefore would be free to reap to profits of their new product. If Hammer is good, I'm sure AMD's stock will rise, but not because of the product, but more because they'll make more money. Revenue and profit are the 2 things a stock trades by, the more successful a product, the more revenue, which in turn usually means more profit, which makes the stock go up.

Quote:
In fact, the first time I said "Buy AMD at 16" it droped even more (to 14 I believe) before climbing to over 80, then splitting.

The last time I saw this happen was early Q3 1999 and then it only split more than one year later near the middle of Q3 2000. Very soon after that split, it went tumbling back down along with the rest of the market.

What's the deal with lampshades, I mean it's a lamp, why would you want a shade? :smile:
a b à CPUs
June 20, 2002 9:05:16 PM

Yes, and AMD's values continue to cycle at a fairly regular interval. I recommended it again at 15 in November 2000, with a target sale price of 30. I recommended it again at 9 with a target of 18. Now I've recomended it again at 9 with a target of 18 just a couple weeks ago, but it's still dropping, 8 would be a better buy of course. In fact 8 seems like such a bargain I'm going to tell my dad to get himself a few hundred shares at that price.

<font color=blue>At least half of all problems are caused by an insufficient power supply!</font color=blue>
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