AMD asks to double common stock to 1.5 billion shares - Page 4

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I'm actually very surprised that that particular individual has not yet made an appearance in this thread. 8O

maybe they are crying becouse of the latest AMD news?

lol,on another note, have any of you compared the qx6700 to the q6600? I have one of each, and a e4300 comeing,3 identical mobos,3 cases,same fans,same ram,same psus,ima play with my bday bonus, and see which one OCs the highest margin

Your son and I have a lot in common. n'ough said.

The stock splits, AMD issues one paper for every paper the stockholders have. Effectively, the value of the stock will be 1/2 of its previous value.

The only problem is how AMD will get its most needed cash after this transaction. They probably will lose some money because they will have to pay the print shop for the newly issued shares.

Tell me that you are married and your wife is taking care of your income, otherwise...

Markets open in a few minutes... any crystal balls?

Down 2.5% in pre-market.

If they do dilute, my new entry point goes from $5-7 to $3-4. It all depends on the type of funding they receive and by whom.

White knight?

Stockholders are in major risk for a total stock recapitalization... it's moving closer to Chap 13. AMD survives, but stockholders get wiped out.

Ew... they also are going to announce missing 1st quarter revenue estimates @ 10:30am today (EST)

I've got a song stuck in my head... "She's a BRICK... HOUSE"

Don't forget a few basic stock market maxims. When all the amatuers are saying a stock will go one way, that's usually when the big pros know it's time to take em out. That's why if you think you know where it's going to go, it's a lot better if you don't hear everyone and their dog saying the same thing you are thinking.

2nd, look at the gigantic trade Friday. That's because they know more than we do. Capiche?

This is why Warren Buffett's ideas are actually quite a good plan.

Contrarian investing... the herd may be mindless, but you can still get run over by the stampede.

Technically speaking, AMD's share price can go up and one might make money despite all doomsayers at this board.

The fact that you cannot pay your telephone bill today for not having enough cash where in fact you will receive a big lump-sum from your investments in couple of weeks doesn't make your financials poor (though for this particular case the stock value will probably go down due to the negative sentiment in the market).

One problem I have with financial discussions in this forum is that simple and common transactions are reflected as the end of the world for AMD. It is perfectly fine to issue shares to raise cash or acquiring another company to expand business. Everybody does that.

I read remarks like "AMD is ripping off its shareholders" or "AMD will go bust for not having cash". These sound plain silly and stupid, that's all.

The value of a stock is determined based on investors' expectations. If acquiring ATI improves the profitability of AMD, the stock will reflect this fact and will go up.

No need to worry about lacking cash, issuing shares, taking loans, being taken over, etc.

Believe it or not it's more of a bad financial decision to have lots of cash and sink it in stupid projects like Itanium or Netburst then engage in a senseless price war only because you have plenty of cash to afford it and cannot defeat the competition with technology and product quality.

FYI - 80% of all mergers fail to ADD VALUE to the acquiring firm (to compensate for the premium paid). Will AMD beat the odds... hmmm....

Bull. Companies that are on the path to running out of cash in a matter of months, have crappy balance sheets and are already leveraged to the hilt, and just made an acquisition they can't afford are definitely things to worry about if you are even thinking about buying their stock.

Bull. Companies that are on the path to running out of cash in a matter of months, have crappy balance sheets and are already leveraged to the hilt, and just made an acquisition they can't afford are definitely things to worry about if you are even thinking about buying their stock.
No, it's not Bull.

Firstly, put my above comment in its proper context, don't just take a single sentence and give me your life story. All I'm saying is if the acqusition is financially sound, finding cash is not to worry about.

Secondly, the stock value does not depend entirely on a company's current financial statements, current profitability (commonly used to bash AMD at these boards), earnings per share (EPS), etc.

From the top of my head, I can give you ten stocks which are going up or which have positive outlook with negative profits, negative EPS and "crappy" balance sheets.

Arguments, not empty words mon amis, so that we can discuss...

A little depressed? We should have BM on a suicide watch.

Why do you guys pick on Baron? If he is holding a lot of AMD stock, no need to rub it in.

geesh.

Bull. Companies that are on the path to running out of cash in a matter of months, have crappy balance sheets and are already leveraged to the hilt, and just made an acquisition they can't afford are definitely things to worry about if you are even thinking about buying their stock.
No, it's not Bull.

Firstly, put my above comment in its proper context, don't just take a single sentence and give me your life story. All I'm saying is if the acqusition is financially sound, finding cash is not to worry about.

Secondly, the stock value does not depend entirely on a company's current financial statements, current profitability (commonly used to bash AMD at these boards), earnings per share (EPS), etc.

From the top of my head, I can give you ten stocks which are going up or which have positive outlook with negative profits, negative EPS and "crappy" balance sheets.

Arguments, not empty words mon amis, so that we can discuss...

While it's not the whole story, financials are a critical part of it. In AMD's case a very critical part of it. There are lots of people investing in these stocks on this board with little to no understanding of how to read a balance sheet, who can't even tell the difference between a stock split and a stock authorization. Trying to minimize the importance of a company's financials only plays into that ignorance. The result will probably be more people burned by things they don't understand.

We don't pick on just BM we also go after DragonSpayer because he is the Intel version of Baron.

I actually like AMD and hope they make it I used to be a stockholder but I sold my 15$ shares off last February when it ran out of gas passing $40. I doubt whoever got my 1000 shares at 40.50/ share enjoyed their purchase as much as I enjoyed the sale. If Baron is a stockholder I don't feel sorry for him because the signs of decline have clearly been there for a long time. If you didn't bail out of this when Intel clearly had a winner in October-November 06 I can't really feel very sorry for you because you clearly made an emotional decision not a financial decision.

The big drop today was the dilution news but it aint over yet the warning was just for gross revenue not the net profit that could be a lot bigger shot in the shorts than expected as well.

AMD needs to start releaseing on time,R600, and put their money where their mouth is,k10, and show what they have created...

The SEC filing asks for authorization to double the shares outstanding to as many as 1.5 billion. I am quite certain they are not going to instantly dump another 750 million shares on the market. It does, however, indicate they feel they may need to issue more shares to bring in revenue (it even says that in the filing). And yes, that would dilute the value of shares already outstanding. To what extent would be determined by the number of new shares issued - which won't be 750 million in one fell swoop.

Note that Wall Street did not panick and halve the price of AMD stock today (the drop that did happen was mainly due to the profit warning). That's because this is sort of share authorization is just normal business practice.

Makes sense?

I don't know any of the basis for this decision either. To be perfectly honest, I still don't understand why AMD bought ATI in the first place. That's why I refrained from drawing immediate conclusions and said, the stock price might go up or if the decision is financialy viable.

what say you now?
i give you credit though for changing your opinion as the discussion has moved.

i have to move on to other students...

verndewd: you are making stuff up. stop it.
you don't know crap about the SEC - they won't care abt this AT ALL.
tempory dillution does NOT = long term bad. companies don't do transactions unless it is in the future interest of helping earnings. pro forma eps is only a metric and hardly the end of the discussion. it is a useful tool, but not anything real.
sidenote: new issued shares are not necessarily dillutive. it depends on the price paid and the uses the money is put to. yes, typically new issued shares have a dillutive pro forma effect, but smart investors and managment are more interested in the future effect

to say that when the shares are issued the stock will be cut its price in half is PURE stupidity. it assumes thery simply have a nice bonfire with the money raised... good grief

some people might think i'm being harsh
but, there are a number of people talking completely out their butts, who don't know jack abt the subject, and yet present themselves as some sort of expert authority. to those of us who do understand you just look silly, its painfully obvious, please stop making people dumber.

-tiger

covered and considered? hardly

i'm not even sure if you're saying you agree with my points or not...?

How about a Non-Hostile takeover? Joke aside, point taken. Yes I meant acqusition.

It certainly did fall where people predicted it opened down 4%.

I would suspect the cat got out of the bag early on the revenue announcement and some big players got wind of the news Friday morning. There was a huge volume of AMD Friday morning that shaved off 3%.

no, actually no one has said it completly correct yet. my post corrected a lot of the partially correct posts.
and as for breathing easy, YOU'RE the one talking out your ass
i've read the entire post and you regularly have stated things that are wholly incorrect or misleading.
your just mad that somone called you out on it.
life's meaning? i don't know abt that. But i do know that people who read my posts and lance525's posts will be better educated abt the subject, while people who trust you walk away misinformed.

-tiger


And that quantifies your mad claims how? How is flaming proving anything? Dont play the downplay to avoid your ignorant suppositions with me.Just dont .

I always tell people that my opinion is not a professional opinion.
I am here speaking with peers about assumptions to your discrediting flames?Not that you have validated much but a low level of contentment about your own life.

Give the facts if I am wrong i am wrong or STFU! dont keep playing the hero with nothing. and stop bieng argumentative with me.

awwww, did i hurt your feelings???
i said your were wrong and making stuff up... which is true
and now you take it PERSONAL, abt my life and stuff.... hahaha
yeah, who went to far?
see, thats what people do when they have nothing left...

the hero? well, if being right makes me a hero, then thanks
i was just trying to help some people who were interested in the subject.

if you consider it a flame, well if someone insisted that you could install a core 2 duo on a socket 478 board, what would happen?
i said you were making stuff up and to stop - you don't want to hear that then stop misinforming people.