Advanced Micro Devices Inc (AMD)

[kpf]

rupert

My point is poor Investor Relations.

I dont see the management giving any signal that it is convinced the stock is currently undervalued and the analyst consensuses for earnings in 2004 and 2005 are way off their own expecations, although they have beaten it in the last consecutive four quarters by 12,5, 25, 75 and 200%.

It would not require much cash to buy back 1 Mio shares per quarter (current allowance is 300Mio USD). And it would cost the company no cash at all if the management would buy some of the shares of the company to show conviction it is worth to do so.

Instead they ask their shareholders for allowance for a stock options "incentive" plan. The recognition of that is that they want to acquire stock at more favorable conditions instead of simply buying it at current prices.

Which is not only a slap in the face of shareholders, but more importantly is not exactly the kind of signal what makes the investment community believe AMD would be an attractive investment currently. Which is not in the interest of AMDs shareholders.

I did not look much closer at it yet, maybe it makes sense.
If so, it is communicated in about the worst way possible.

K.