Intel Corp (INTC)

[Professor MD]

Dear Joey. RE: “BRUSSELS, July 18 (Reuters) - Germany won permission on Wednesday from the European Commission to grant 262 million euros ($361.5 million) for microprocessor maker Advanced Micro Devices Inc to expand a plant in Dresden.

The Commission generally prohibits state aid because it provides an advantage to one company over another, but in this case the scheme will create 565 jobs in a poor region of Germany.

AMD plans to spend 2.2 billion euros in expanding the microprocessor plant.”

This is the same commission that denied Intel a similar grant from Ireland. AMD will spend 2200/565=3.9 million euros ($5.38 million) of German money to create each of these jobs.

Two days ago AMD convened a “special” meeting of the share holders that was expected to last 45 minutes. It ended up lasting less then 5 minutes, and the subject was clearly not significant enough to justify a special meeting.

I believe that the real purpose of the meeting was to announce the financing of a $ 3 billion expansion of the Dresden white elephant by Germany Inc. It was timed to mitigate the effect of tomorrow’s earning report of AMD’s second quarter. The subject of the special meeting was not included when the meeting was first announced.

It looks to me as if Germany’s Inc, who must have applied for the permission from the committee several months ago, reneged on it’s promise to AMD.

P. S. It is part of my training to create a theory based on data that are unanticipated.