Intel Corp (INTC)

[tekate]

More Smoke and Mirrors . . .
Ed Stroligo - 7/12/08

As we mentioned yesterday, AMD is writing off another $880 million off its investment in ATI.

What should you make of this?

In all likelihood, AMD has been shopping around the consumer products part of what used to be ATI and found that it isn't going to get much money for it, nowhere near what they paid for it.

So what they did was the accounting equivalent of slashing the price for the division before actually selling it.

Why would they do that? Well, if they hadn't done this, if they sold the division next week or month, they would have to show a huge loss on the sale of the division. So instead, they're taking the loss now, so when the sale happens, it will look like AMD broke even or maybe even "made" money..

http://www.overclockers.com/tips01360/