Replies to post #17082 on Advanced Micro Devices Inc (AMD)

[kpf]

Petz - Dilution

From the two convertibles of last year there is more than 70 Million potential conversion. I dont see a problem here, because if these would be converted debt would be reduced by 900M USD. Plus, for the convertible of automn 2002 (@7.37 USD), i think the dilution already is priced in because most of the current short interest is based on these shares imo. Iaw at or before time of conversion this would require covering of some 30M shares.
I dont think the market would expect the conversion to happen before end of 2005, because until December 2005, only the holders of the bonds have the option to convert, only after this date AMD has the option (and hopefully the money in the bank) to buy the bonds back. Until then, AMD pays interest....
The stock-options dilution does exist. But then you have to take AMDs Options-exchange program into consideration. ;)

In essence, diluted eps in AMDs case is not really a concern.

K.