It seems readily apparent that AMD faces nothing but negative cash flow in their current situation. A cash infusion COULD change things, which is supposed to be what the Silver Lake deal was all about, assuming there's any truth to it.
I was talking about negative cash flows in the context of a generic valuation. In AMD's case the market cap is so low because the IP they can monetize must be deducted from the negative cash flows.
But I disagree that a cash infusion can change things. This BoD along with some of the executive members, Lisa Su included, have been burning cash like crazy in the last few years and they can't seem to turn the company around, give more money to them and expect a different result seems akin to the definition of insanity to me. AMD needs new management, top to bottom. Bring in guys that know how to manage a company and give these guys money and AMD will turn around.
*shrugs* Depends on who the investor blames for the board's failures. If they blame people like Dirk Meyer and Rory Read then maybe they'll give Su the nod and invest. If they blame the hangers-on that are still there . . . no, they won't throw them any money.
Those two guys were the public face of two AMD debacles (Bulldozer, Ambidextrous) but by no means they were alone conceiving it let alone executing it, and no strategy as big as these two could be executed without express authorization of the BoD. No one with billions on the account would be dumb enough to buy these sacrificial lambs while preserving the rest of the BoD.
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