[Student]

AMD stocks are now valued at about 13,48!!?! So my questions are: 1. Why has AMD stock price suffered that much (On march 2006 it's price was about 40 per share, now, March 2007, 13.48)? 2. Is it clever to invest now in AMD or Intel and why? 3. What would share price be, if Intel and AMD would agree on a merger creating thus monopoly(this question is hipothetical only)? 4. What can you say about AMD's managment?

[crimsonc]

AMD have recently dropped prices across the board due to losing business. This would explain why the shares have gone down. IF Intel and AMD were to merge (and they would NOT be allowed, at least not in europe), share prices would go back up, probably well up past 40.

[JST21]

AMD has suffered some production problems as far as I know. Intel has been coming on stronger. The run up in AMD's share price last year was a lot on speculation and a lot on how poorly Intel was performing. I dont think Intel or AMD are the place to be right now. I like the big brokers like Goldman Sacks. A merger of AMD and Intel would never ever happen. The deal would never get approved by the SEC so there is no possible way they could ever merge, so i have no idea what the price of a merged company would be. As for AMD's managment I dont know

[Quilla]

1. AMD reported Earning of 38 cents per share for his Q1 2006 (around early April 2006), that was 9 cents more tha Analyst expected. On Q4 of 2006 (around January) it reported a loss of 4 cents per share (a lot less tha Analyst expected). The Expectations for Q1 2007 is a loss of 28 cents per share (i.e. a big loss). What this tells you is that the comany was making money in march 2006 and it is lossing money in march 2007. For that reason and the expactations that come with earnings, the share price was 40 one year ago and only 13 now.2. Chip manufaturers (AMD, Intel and others) have all anounced a decrease in demand. All of the chip manufacturers are selling less and less chips every quarter, less sales = less earnings = lower stock price.3. Hard to determine but VERY VERY VERY unlikely to happen, in the US monopolys are not encouraged (look at all the litigation that Microsoft has going on) (also look at all the arguments about deregulation the energy/gas industry to encourage competition). Therefore the DOJ will not approve such a merger. 4. I can tell you that they expect the share price to decrease further, if you look at trades that management has performmed over the last year, you will see a lot more of sales of shares than purchase of sales. That is somewhat of an indication that they forsee the shares going down even further. Think about it, if you worked inside the company and had a big ownership in the company, when would you buy and when would you sell? sell high buy low....

[Rabbit]

First, if Intel and AMD merged, it would not be a monopoly. Second, it is because of an antitrust suit that AMD filed against Intel that is part of the decline of AMD stock in the first place. Intel is already acting like a monopoly and AMD is saying that they are getting away with it. To make matters stranger still, AMD "stole" some 4 percent of Intel's business and the AMD chief got something close to $16 million in compensation for his efforts at getting his people to pull it off. As to what his people, who made it happen got, that is another story.I know I wouldn't buy it, even if I had money to spare to bother with it. But you are right, it might be good to watch to see if it finds its bottom and as long as business improves it has no where to go but up--IF.