Replies to post #30889 on Intel Corp (INTC)

[wbmw]

Re: i never thought amd would dig themselves out of a debt hole either, so what do i know...

It's a bit of a financial miracle, is it not?

In the past several years, they earned the following net income:

2003 - ($274M)
2004 - $91M
2005 - $165M
2006 (so far) - $274M
Total Income - $256M

Yet, from 2003, they've grown from $2.44B in shareholder equity, to $8.06B this past quarter.

Now that's some creative accounting, isn't it? How did they do it?

Well, the first thing I noticed was some pretty steep share expansion. Looking back to 2003 and 2004, AMD's share count stayed pretty much in the mid-300Ms. Yet in this most recent quarter, they reported 485M basic shares this growth of more than 100k shares represents almost 40% in share expansion over just 18 months. This is hardly a number you would expect to see from a healthy company.

At some point, I'd like to do a deeper dive on AMD's financials and find out just exactly how a company making a quarter of a billion in earnings over a few years can increase their assets and decrease their liabilities to a combined $5.5B.

Not saying that AMD is the next Enron, but with this kind of accounting (assuming it's legit), they ought to earn a spot near the top place in America's corporate financial masterminds.

[willco]

the problem with the merger from an ATI standpoint is that it may narrow their market. Also AMD stock is not looking like such a hot ticket.