Re: AMD
One of the many analysts covering AMD:
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The bad news is that our detailed analysis of AMD’s cash situation indicates that the company likely can’t get to the end of the September quarter without an equity financing in the $1 billion range. Investors need to remember that AMD’s ability to offer additional debt may be constrained by the need to pay back the company’s existing bridge loan. We’ve factored in the various other sources of funding that AMD plans on accessing, but the numbers still don’t make it in our opinion without external financing.
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This news has been out for several weeks now. I was looking at AMD when it was trading near 15 w/ rumors of LBO causing a slight pop in the stock price. I guess reality has set in again that AMD doesn't have enough cash to make it through the year. If they don't get cash somehow, they are screwed. As soon as I saw that, I scratched all notions of buying AMD. I'm a long only investor.
I don't know why there's a lot of open interest in the april puts, but the situation overall doesn't look great.
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