If IBM does buy AMD, who is going to make good on all the option purchases I have made?

Don’t tell me it’s.. ‘the market shafts the individual stockholder’, again….

Why ever would IBM want the horror and expense associated with chip manufacturing - AGAIN?? Been there, done that; it doesn’t seem logical that IBM would want to combat Intel for numerous reasons.

Amazing, if you’re asking that question you have no business buying options, let alone stocks in general. Stick to mutual funds.

AMD would be acquired by AAPL before IBM.

All Macs use ATI/AMD graphics boards already.

IBM uses a lot of AMD parts in their hardware as well as Apple. So that really isn’t a good reason why Apple would buy AMd before IBM.

Be careful about amd they have more inventory than they know what to do with. Remember Cysco in the late 90’s same thing.

AAPL buying AMD would make sense in some important ways. The graphics chip and graphic chip development going forward is an important one. And dove tailing that would be using AMD processors. Remember, AMD’s x86 chips are compatible with Intel’s so the software intergration of x86 chips is already done. All AAPL has to do is swap out the logic boards and install AMD chips. And of course they would control their own chip development going forward and not need to rely on either Motorola, IBM, or Intel.

There is nothing more that IBM hates more than being the in the commodity business. IBM is a great innovator and most of the computer technology we have today came from IBM. But as you can see IBM is no longer in many of those businesses. The list is huge, the most recent ones for example are hard drives, yet IBM is no longer in that business. IBM doesn’t even make PCs anymore. Why, because they became commoditized. Computer chips is one of the biggest commodity business there is.

This is one of those rumors to pump the stock and sell it. Just more market manipulation.

I would like to join a class action lawsuite against Fincail Times for their reckless reporting. Are there any attorneys on board yet?

How do we go about suing FT.com for the reckless reporting?

So I take it you shorted AMD or bought near-term puts?

IBM cell chip will rock with Broadcast international/Sony/Toshiba/ONT already on board. IBM will rock the serverBlade /PC/gaming communities. Do some DD and the two companies fit together well. This is a good fit for single source technologies SOCs. AMD will explode with opertunities/potential developing the partnership further. Its time for IBM to branch into entertainment and chip multimedia. IBM needs to buy ONT and break into mobile DSPs also for mobile applications and software.

They rule Sony and Nintendo already and soon to be server market. The gaming community is big money. Bringing work and play to a server near you. AMD works!

Folks look at the AMD chart. Today’s stock jump had nothing to do with the same recycled rumors that have been going on for years. AMD was simply well oversold and they put out a better-than-expected report. So now the share price is correcting to where it should be, which short-term is more like $10. It had no business being a $5 stock and the smart money bought then. If IBM wanted to buy, they would have done it already, or they will do it soon. But with the constant rumors, you never can tell when it is real. Just don’t correlate the stock price movement to the rumor because it doesn’t work that way. Unless this time it is for real. No this time. No, this time…honest!

I am almost certain (but not 100%) that AMD loses the right to make X86 chips if it is acquired. If I am correct (and I believe I am) that pretty much rules out anybody acquiring them any time soon.

It is becoming clear that the Lawsuit that AMD filed against Intel a year ago is going to be clearing up in the near future. So, by saying that I believe that IBM has choose the obvious winner in this case. IBM partnering with AMD will only help AMD branch out into the market and obtain contracts that Intel has been sqandering to themselves. It is looking very bright for AMD and I don’t think a merger will come out of this, but a very well balanced partnership between the two!!!

IBM is probably the only company that can buy-out AMD and still maintain rights to X-86 licensing.

About AMD losing right to make x86 if sold off, pretty sure IBM still has right to make x86 hardware but doesn’t choose to (as IBM man said).

AAPL will never buy a chip company; it’s not their thing and they prefer to whipsnap/thrash/ and otherwise beat up their chip supplier for better price etc.
And finally, all of IBM’s high end servers are IBM built chips inside. AMD and Intel chips only show up in X series (entry level) servers.
Let’s hope the AMD-Intel lawsuit doesn’t end like the DEC one where upper management rolls over and takes the payoff.

It’s true that IBM wants to stay out of the commodity business. Like providing weapons to a struggling country, it makes more sense for IBM to give AMD the weapons to battle Intel than to join the war. If you work in the chip business, you know that Intel is probably 2 to 4 quarters ahead of the technology curve and is not to be angered too much. IBM does have it’s own processor business, a niche market which generates enough profit to keep. The only reason they would they jeopardize their own chip business is if they were thinking about getting rid of it.

This is typical munipulation by shorters who happen to put out information. It’s so simple really, but still effective for people who have no idea what they are doing when they buy or sell stock. Lets see how it works:

Pick a pig of a company with huge debt, bad management, overstated assets and faulty products that is almost certainly going bankrupt. Watch the stock dwindle to $5. Buy the stock and put out some nonsense news about it being acquired, then short the stock and leave everyone with a bag of crap.

Whoever buys on speculation needs to close their E-Trade account and open a safe savings account and get their 4% interest. Whoever thinks anyone is buying a company that has clowns running it into the ground is a clown himself.

Why would IBM buy this mess?

Why are there no women on this site? Don’t they blog, or if there are women, they must look like mooses.

Many companies are bought when their chips are down and the buyer wants to be in that business later on. Bank of America wants to buy Country wide because they want to be in the mortgage business when it picks up. The mortgage business will not die and so is the chips. This is the best time to buy countrywide and AMD, because they are strained financially and can be bought at low price. AMD is not a crap as some would think. It is an innovator and that is a proven fact. If it is true that IBM or anyone else wants to buy AMD it is because they believe that the law suit of AMD against Intel has merrit and it could yield several billion dollars in punitive damages, which would make buying AMD for nothing. Furthermore, if Intel succeeds in destroying AMD it will turn to IBM. that is why IBM feel it is time to act now.

To Rusk:

AMD is not a bargain at it’s current price. The lawsuit could go either way. Why would a company pay billions of dollars to acquire a company and then spend millions trying to sue another company for only a chance to make some money? It will also likely take years.

AMD’s balance sheet is pathetic. Whoever takes this pig will also get the slop. The slop could be a bill for 7 billion dollars and useless technology that will cost billions to fix.

AMD died already. The disguised financials don’t hide that fact if you look closely at it. The only thing left is the rolling around on the ground for a while until something other than management can be blamed. My guess is AMD will blame the softening markets and poor economy, or perhaps Intel’s exclusive deals, but one thing is for sure, they will blame someone for their mistakes.

One side note:
For computer sellers like Dell, they want competition in the chip market. The only saving grace for this mess of a company is a buyout or infusion of cash from a large corporation that knows spending 5 billion today is better than spending 10 billion tomorrow. The likelihood of this happening is minute though, as the leadership of AMD would have to be kicked to the curb as a condition of the investment. Having the current management run the company after giving them billions would be like paying an imbecile to shave your mustache with a machete.

You’re overlooking another motivation for the system builders. Yes, competition drives down price. However, having multiple sources also protects them from supply shortages or falling behind the performance curve. If Intel makes a rare misstep, their customers should have someone who can pick up the slack. No manufacturer worth its salt wants to be single-source, hitching its success or failure entirely to that of a key supplier. Dell’s stubbornness to implement AMD is part of what knocked them off their pedestal.
In addition, if management is as bad as you and Cramer say, I would look for a changing of the guard soon. The board doesn’t like getting their share price beat up any more than regular shareholders.

There are five clear reasons why IBM Won’t Buy AMD, according to The VAR Guy.

Sorry but the X86 chips license is not transferable. However IBM could use ATI.

The VAR Guy is dead on but he failed to mention the X86 licensing issue (which I am fairly certain will not allow AMD to make X86 chips if it is acquired or merged).

ChannelWeb debunks this rumor, and twists it back on itself:

www.crn.com/hardware/205918278

It looks like AMD could have to pay IBM to renew their process-development contract by the end of this year.

well amd is around 7 bucks now..does anyone think it will go back to the fives?

maybe if we all buy amd the stocks would go up?
lol

Whatever

It is 7 $ now and 41 $ two years back before ATI acquisition. Look at the upside folks. It should reach 20$ in a years time. 200 % profit in 1 year. Good buy.

The odds are much higher it will be bankrupt than that it’s stock will sell for $20/current share.

smart1 grow a pair, and hang on!

Anybody hanging on to AMD needs to grow their IQ, not their nads. Unless that is where their best thinking comes from…..

You gotta have a pair first.
and I’m looking at future returns not playing hot potato.

I cannot see much of a future for AMD. Their new products are already obsolete and they are already a full generation behind in fab process technology (and losing ground every day). Additionally they have huge debt, huge cash burn rate, dwindling cash available and they are losing hundreds of millions of $ every quarter. I am not sure what kind of future you see in that.

You either forgot or just dont know that AMD has a lower cost product than INTEL ;And were the first to intruduce a true 64 bit processor.the nanometer size maybe industry; But wouldnt you rather have a better product, then work on size.

You obviously don’t know much about semiconductors. The smaller the geometries, the faster and cooler the part runs (hence a better part).

AMD was not the first 64 bit processor.

AMD has a lower “price” part than Intel. They have to sell at lower prices because their parts are not as good. Their “cost” is higher, hence they are losing hundreds of billions every quarter while Intel is making well over $2Billion every quarter.

Unless they do something about losing all that money, they will run out of cash in next several quarters. Finding someone to bail them out will be difficult. Abu Dhabi dumped in $700M and lost half of it in a month.

whom had the first 64bit?
how much bad silicon at 45nm;compared @ 65nm. I heard the waste silicon is going to be used for solar panels.
good luck intel.35nm is going to be the new standard is it not? maybe i’ll buy stock in solar panels.

the year was 2000 intel w/2 32bit cores in parrallel. this is not 64 bit.

now in year 2003 AMD had developed a true single core 64 bit processor. now its 2008 and still intel is still JB welding cores together.

The first 64 bit microprocessor was the MIPS R4000. Intel introduced one in 2001 (Itanium) that has not been very successful but is still having new versions being produced. There were also several others dating from the early 90’s from Sun, Dec, even VIA. You can check this kind of stuff out on wikipedia…

The first 64 bit microprocessor was the MIPS R4000. Intel introduced one in 2001 (Itanium) that has not been very successful but is still having new versions being produced. There were also several others dating from the early 90’s from Sun, Dec, even VIA. You can check this kind of stuff out on wikipedia…

You are confusing multi-core processors with the 64 bit issue. Intel’s 4 core processors are 2 dual core processors in one package while AMD’s is in theory all four cores on the same piece of silicon. I say in theory because they are so far unable to ship it in volume. There is a lot of debate over which method is better but the Intel method will for sure yield much better in the wafer process.

You know your stuff , but why does intels quadcore share a bus or dual bus, whereas AMD’s quad has 4 busses?
seems to me that more memory needs to be tied up in the clock cycle on the processor is this why intel does not advertise clock speed. @45nm gives intel plenty of room for more memory on the core, but you still have a traffic jam of sorts till each core dumps its load. individual busses would help with the multitasking proccess.

Does it matter what AMD has when they are 7 billion in the hole?

AMD has a chip that doesn’t work. AT least the 2 dual cores Intel has work, and that’s all that matters.

AMD died already. They cannot be saved without going bankrupt, diluting the stock or having someone step in and buy them for a few billion. Two of those three choices are bad.

Frank
I must be imaging things, but I see products on store shelves and the sales adds.the barcelona is due out. Dont you think HP would have dropped AMD if deliveries were too far out. AMD like other manufactures have manufacturing problems,
that’s inherit in any industry and fixing problems cost lots of cash; but the rewards if successful are great. How do I know this, well I have been working in manufacturing for 25 years.

Look AMD went up because their selling their products. Witness last quarter, their graphic cards are selling off the shelves. Fast and energy efficient. their new server chips are selling because they are also fast and energy efficient. That will be the new game I’ll spell it ENERGY EFFICIENT.

AMD is going up because of rumors about someone buying them. This is typical pump and dump tactics. Last week Intel was rumored to be buying AMD, and now its an investment group. The stock has been climbing now for two weeks on negative news, until Intel and this investment group rumor came into play.

Expect an announcement from AMD for another dilution of stock soon as no one in their right minds would pay billions to take on massive debt.

Doesn’t anyone find it odd that there are people posting anti-amd posts here. The only reason to be reading this article is if you were interested. Frank, by posting like you do, you are guilty of dump THEN pump, the opposite of what you accuse others of.

I am guilty of nothing except telling it like it is. Blame the corporate analyists when they spew positive news on companies so they can get out while the little guy suffers. Blame them for pumping up garbage stocks because they get a commission, or because they are paid to do so in times like this, when AMD will go bankrupt if they can’t sell this pig of a company they have become soon.

I forgot to mention, just for the record, I own no AMD stock and have never owned AMD stock. I don’t short the stock and don’t have options on it either.

Five years ago I was in the market and I had stock in a company called Acclaim (AKLM). You won’t find them now because they went bankrupt, but before they did, they lied on their financials. They forgot to mention a $5 million dollar loan from GMAC. I lost a decent amount of money on that stock and haven’t been in the market since. How can you make sound decisions when they are lying on their financials? The answer is you can’t. You cannot make sound judgement when companies lie, and going bankrupt is the easy way out for them, afterall, they just find new jobs, but you are the one left paying for their mistakes, and even worse, lies.

I am an accountant and will soon be a CPA, so I can see right through the rediculous balance sheet. It reads like a fairy tale. Look at the goodwill added in the last three years. Notice it was added right at the time when they acquired debt? It was put on the balance sheet to counter the debt without any valid reason (as became obvious when they recently removed $1.6 billion of it).

The question people who see this stock as a bargain need to ask themselves: Will this company be bought out by another company or will they go bankrupt? That is all that matters really, as they already lost the processor battle with products that are inferior and even worse, faulty.

The problem is you have little time to decide, as looking at their cash flow statement, they are on the verge of going bankrupt this quarter.

If the company isn’t bought, they will have to go bankrupt. That is evident from the financials, EBITDA or no EBITDA. GAAP is out the window at this point, so if the numbers look this bad under EDITDA, then they have some serious problems.

When this company goes bankrupt you will loose everything. If they get bought, you will gain something, but not much, as the company buying them inherits their debt and will not offer more than it’s current value of shares. It’s is a losing game right now either way.

The other option, of course, is for AMD to outsell Intel in a soft market and recession by a factor of 2 to 1 and earn enough cash to pay off the staggering debt they acquired in the past two years. This is a fool’s option. If you think this will happen, you need to close your stock market account and go with a savings account.