Intel Corp (INTC)

[DewDiligence]

AMD odds and ends:

>> The notes are convertible into the company's common stock at an initial conversion price of $7.37 per share.<<

This shows just how close AMD was to being locked out of the capital markets entirely. Typically, 5-year convertible notes paying 4.5% interest from a company like AMD have a conversion price of 25% to 50% above the current stock price. But AMD’s notes have a conversion price which is below the current price.

What does this mean? That the buyers of these notes don’t think much of the chances for substantial appreciation in AMD’s stock price over the next 5 years.

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Re Sanders’ stock purchase: note that Sanders waited until after AMD announced the layoff and special charges before buying. This protects him from an insider-trading violation. Had he bought just before the release of bad news, it would have been an actionable offense. Dew