Advanced Micro Devices Inc (AMD)

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AMD's amazing run--brilliant but busted

http://zdnet.com.com/2100-1107_2-5063636.html

AMD is in the somewhat unusual position of running toward an all-time loss. From April 1970 to the end of the second quarter of 2003, the Sunnyvale, Calif.-based chipmaker's cumulative net income--including the effect of acquisitions, sell-offs and charges--comes to $186.6 million, according to a tally of the net income figures culled from AMD's published financial statements and a review of documents from the Securities and Exchange Commission.

This translates to an annual average net income of $5.65 million. Put another way, the $186.4 million in net income AMD amassed in 33 years is accomplished about every 2.5 weeks at Intel.

At $186.6 million, AMD is still way ahead of me, but time is on my side. The company is expected to post a net loss of 38 cents a share, which translates to a $131.4 million loss, in the third quarter, and to follow it up with a net loss of 22 cents a share, or $76 million, in the fourth quarter, according to a consensus of analysts at First Call.

Those two successive losses will put them $20.8 million in the hole. I have spent less than I've earned to date, a fact proven by account balances. Unless a massive garage sale takes place at One AMD Place in the next five months, I pull ahead.

The break-even date for AMD comes Dec. 3.

AMD: on their current path, a company with negative ROI by December 3, 2003. Puts things into perspective....