Originally posted by: stevejst
Listen, you will never know the company is going to bankrupcy or not, based on the company reports. Makes sense?
now that is just a silly comment....
To be precise, AMD is racking up 6 quarters of financial losses, all in the range of hundreds of millions of dollars. And they are continuing making further losses. For the year 2002 they lost billion and a half.
Of course, they might be doing fine in the future after they cut their expense and workforce. Now what is a chance for that? "SELL" means exactly that, cut the losses and run away from that company because their future looks bleak. They put all the gamble on Opteron and if that doesn't take off the way the hype is ... judge yourself.
It's people who listen to analysts recommendations as if it were the gospel that cause mass instability in the economic markets. Just where do you think those analysts get there data from anyway? I'll tell you where...the annual reports. *GASP* The same reports you discredited are the source of information for analysts. That's why I say, to be a smart investor and consumer, take a read through their Annual Reports or have someone knowledgeable explain them to you. Don't just take the word of an article in cnet, businessweek, and yahoo.
Now I'll admit that AMD's sales have been disappointing (for like a whole year and a half :Q), but they're still a multi-billion dollar company. Though I seriously doubt their $5.6 BILLION dollars in assets are going to land them in bankruptcy anytime soon, I could be wrong. They have enough cash on hand to pay off all of their short term debt also. Thus, if they do go bankrupt, I'll search for this thread in the archive next year and personally apologize to you.
Maybe I just refuse to believe they're going bankrupt b/c I work for their accounting firm or maybe I just like AMD b/c they bring cpu products to the market that are absolutely incomparable in value. ok ok no more, I'm sorry...