Advanced Micro Devices Inc (AMD)

[Tenchu]

YB, here are the basic points of the article:

- The author's mutual fund isn't shorting AMD at the moment, but may in the near future.

- AMD may dip to $1-2 in the next year or two.

- Bankruptcy is a definite possibility, and debtholders, not shareholders, will own this company.

- Intel's R&D as a multiple of AMD's grew from 3.6 in 1998 to 4.9 in 2002.

- "Lose a billion, borrow a billion." Liabilities increased $1 (from Dec. 2001 to Mar 2003), assets decreased $500M.

- AMD doesn't generate any cash, and lost $1.2B at the operating line last year.

- AMD likely to default on Dresden Loan Agreements.

Take it for what it's worth. BTW, I just subscribed to the 30-day free trial, and I'll likely cancel before I have to pay. I didn't copy-n-paste the article for fear of copyright concerns.

Tenchu