Advanced Micro Devices Inc (AMD)

[bobs10]

A couple of things;

1) AMD used to hedge against $ fluctuations although it appears that they risked more exposure last quarter. Personally I think the $ is still way over valued. The list of things we can trade for a barrel of oil keeps getting smaller. To me the real threat in the 21st century is not terrorism but the lack of cheap energy and water. Just think what could have been accomplished if we had invested in energy R&D instead of Iraqi oil that may never get to the pumps.

2) There are only 2 players in the X86 CPU game, both selling in $'s, so things like a weak/strong dollar are less important relative to other factors.

3) All the cheap oil has been found. While there may be more of the stuff around new sources are going to be a lot more expensive to get to.

4) Demand for oil will increase until the price of oil is competitive with other competing products.

5) The amount of oil in the world is finite and we're using it a lot faster than we're finding new sources.

6) Other countries, in better shape economically than the U.S., are going to be competing with the U.S. for the remaining oil reserves. And since the uses they will put the oil to will be better economically than the uses the typical U.S. barrel goes to, there will be that leveling of the field also.

The good news in all this is that public transportation is going to get a lot better, and the freeways will be a lot less congested. Not so good for the automakers though.

I sure hope someone wakes up and realizes what the real problems are. The U.S. way of life with its far-flung suburbs all dependent on the auto are a recipe for disaster in an energy strapped world.

In a way this should be good for AMD as communication, without ones physical presence, will become a lot more important.