Replies to post #54488 on Advanced Micro Devices Inc (AMD)

[Tiger64]

Here's my take on it...

(1) Hector thinks that a year from now he will be able to do something that will be profitable when flash reaches 65nm and their flash designs might be cutting edge stuff like their processors...

(2)Hector does not want flash distracting away AMD's success in the processor market for the next year...and hopefully intel will give up on dumping flash in the market below cost as it will no longer make AMD look bad as an investment...

(3)Yes this will be somewhat speculative but maybe they can reduce the burn rate down to $50 million a quarter until flash recovers and is used in other types of devices other than pen drives/Cell phones/Photo storage...so if they can raise $500 million in capital it might be less speculative than it seems as I'm sure they are going to give some kind of projections on where they want to take the new Spansion company...

[DARBES]

Well suppose AMD sells Spansion to Samsung, do you suppose that, that could cause intel some consternation ?

[The Duke of URL]

Actually, an inflection point is a moment of dramatic change, especially in the development of a company, industry, or market.

It is very appearance and obvious, a while after the fact.

Before the fact, it requires a very tuned and astute person to detect.

The Spansion spin off is not an "inflection point".


This is only an intent to sell off an asset to pay some bills.

Only this time it will be different. Not only is the market much more sophisticated, the rah rah is all gone, and the Bank's who now control the stock market are beginning to squeeze and look for Chinese companies to lend money to.

I don't wish to seem indelicate, but I'm thinkin' Peter may have by now talked to Paul.

And this is where the rubber has to be introduced to Sand Point Way.