We contend that Advanced Micro Devices, Inc. (NYSE:AMD) one of Silicon Valleys semiconductor success stories, will file for bankruptcy by 2020. Since 2008, this legacy company has survived by slashing operating expenses, spinning off its manufacturing business and transitioning away from its core PC business to growth markets. While it may be succeeding in marketing its turnaround narrative to the market, we see ADM at a point of no return. We identify a toxic combination comprising an uncompetitive product portfolio, technological leap forwards by competitors, several structural challenges, poor positioning due to an ineffective strategy and a worsening balance sheet. While it is bagging some wins, the clock is ticking and AMD will be unable to drive profitability in industries where product leadership, rather than merely pricing, determines success.
What a joke. Company like AMD does not go bankrupt. If things are hopeless, somebody will buy them for IP and talents.
Like this.
AMD, on the other hand, has a sizable net debt position and is burning money.
They are not burning a single $, so as usual you just demonstrated that you have some problems mastering basic accounting rules...
Abwx, I have been and will continue to be civil to you in our discussions on these forums and I would ask that you strive to avoid personal attacks.
With that out of the way, here is AMD's most recent earnings report: http://ir.amd.com/mobile.view?c=74093&v=203&d=1&id=203607
AMD says cash and marketable securities was down $134 million and debt was up $56 million.
Are you sure that AMD isn't burning cash?
What a joke. Company like AMD does not go bankrupt. If things are hopeless, somebody will buy them for IP and talents.
Like this.
They are not burning a single $, so as usual you just demonstrated that you have some problems mastering basic accounting rules...
Other than that you should be cautious since flawed analysis can be taken at face value by some gullible people, you could induce people doing catastrophic operations, just remember that all the people that did listen to you and bought Intel stock in the last 10 months are almost all out of the money...
Other than that this article seems enginered by some cornered short sellers that need to create some panics to get their positions closed without too much losses...
They made operating cashflow losses of $173m. $44m loss if you ignore all of the movements in balance sheet balances.
.
I was referring to cash flow losses because accounting losses include other stuff. The fact is they are burning through cash. Factoring their receivables doesn't help them in the long run, and this article is talking about 2020.
Factor your receivables now, and in 3 months you're boned because you burned through that cash anyway. You didn't gain anything.
Net assets remain unchanged-ish whether you hold the balance as receivables or cash from a company health perspective.
They are using up cash currently.
They have a lot of debt due in 2019/2020.
Their revenues are going down, margins are not that good and they are trying to keep cutting costs.
They are making operating losses and running a cashflow deficit which is mostly being plugged by more debt.
Other than that this article seems enginered by some cornered short sellers that need to create some panics to get their positions closed without too much losses...
AMD says cash and marketable securities was down $134 million and debt was up $56 million.
Are you sure that AMD isn't burning cash?
This opinion matters more than that laughable article.
Advanced Micro Devices Will Live To Fight Another Battle
"Summary
While the fundamentals of AMD are not getting better, its balance sheet at least remains stable.
From a liquidity point of view, the company will be tested several years down the road.
What this means is that investors might reconsider the stock after the current slide, because I think the risk-reward possibilities are currently in investors' favor."
http://seekingalpha.com/article/3199946-advanced-micro-devices-will-live-to-fight-another-battle
AMD is competing in two markets (gpu and x86 cpu) where they only have one competitor and there is plenty of room for two. They really don't need to outdo their competition to make a profit. If Zen is halfway decent they'll be ok.
Then why hasn't AMD been making a profit with its current products?
How this isn't in politics and news instead of CPUs is beyond me.
Yes politics and news is perhaps the right forum then
ADM?? How are we ment to take this report seriously, if they don't even bother proof-reading the headline of their report?we see ADM at a point of no return
This opinion matters more than that laughable article.
Advanced Micro Devices Will Live To Fight Another Battle
"Summary
While the fundamentals of AMD are not getting better, its balance sheet at least remains stable.
From a liquidity point of view, the company will be tested several years down the road.
What this means is that investors might reconsider the stock after the current slide, because I think the risk-reward possibilities are currently in investors' favor."