Replies to post #715 on AMD strictly moderated (AMD)

[KeithDust2000]

A somewhat weak close to a strong week:



I guess the $40 mark is still of some significance for many investors.

A nice comment from Joe Osha:

"Nothing that we heard from Intel this week changes our belief that AMD is going to take more share in server processors this year," said Merrill Lynch analyst Joe Osha in a report this week.

(from the Itanium Solutions Alliance meeting)

[rlweitz]

AMD said it expects to take a $20 million charge in connection with the redemption.

That's a nickel off Q1 EPS. $20 million does seem awfully high. Does that come with an ML upgrade?

[chipdesigner]

Yeah, $20M charge is about right-- shouldn't come as a surprise, as the 10-Q/Ks have noted the prepayment penalty schedule: principal + interest (that part is fine, no charge) + an extra 7.75% of principal for paying it off in this particular timeframe. That works out to over $16M on this $210M of principal. The rest must be this fee or that fee.