It would be a pain in the ass process. Activist shareholder would have to rally other shareholders to remove and replace board members who would fire the CEO.
It would be a pain in the ass process. Activist shareholder would have to rally other shareholders to remove and replace board members who would fire the CEO.
Locut0s
Lifer
- Nov 28, 2001
- 22,205
- 43
- 91
Given how poorly they have messed up this CPU release and how much ground Intel now has on them, and given how invigorated Intel is, I don't see AMD being competitive for a long time to come. Whether they go under or not is another story. Like others said they make a lot more than just desktop/workstation CPUs but then it's there that they get all the press coverage so?
Then why were Charles Prince (Citigroup) and Stan O'Neal (Merrill Lynch) so quick to resign after their companies announced a single quarter of reduced profits? Couldn't they have stuck around longer if the firing of a CEO is that long of a process?
Or alternately, why wouldn't Hector have resigned by now?
I suppose any answers to those questions would be speculation, but I'm just curious.
zanejohnson
Diamond Member
- Nov 29, 2002
- 7,054
- 17
- 81
who cares how much power it takes.....
my presler at 4GHz, is about as quick as a core2 at 2.5GHz according to superpi and sandra...
zanejohnson
Diamond Member
- Nov 29, 2002
- 7,054
- 17
- 81
zanejohnson
Diamond Member
- Nov 29, 2002
- 7,054
- 17
- 81
Jadow
Diamond Member
- Feb 12, 2003
- 5,962
- 2
- 0
I'm conflicted on AMD. Personally, every PC I've homebuilt since about 99 has been AMD based, I think AMD is the best bang for your buck as a user.
On the other hand, Intel makes more profit in 1 quarter than AMD has made in the history of it's company going back to 1972. I only invest in profitable companies, and frankly, AMD isn't one. If they made their next chip plant in India or Indonesia instead of Texas or New Mexico, I'd feel much better. As an American, I hate saying that, as a private investor, I have to.
On the other hand, Intel makes more profit in 1 quarter than AMD has made in the history of it's company going back to 1972. I only invest in profitable companies, and frankly, AMD isn't one. If they made their next chip plant in India or Indonesia instead of Texas or New Mexico, I'd feel much better. As an American, I hate saying that, as a private investor, I have to.
the entire market is just not stable right now. a company's performance doesn't necessarily reflect its stock performance. walmart is the world's largest retailer... yet its stocks isn't doing so great.
zanejohnson
Diamond Member
- Nov 29, 2002
- 7,054
- 17
- 81
Originally posted by: intogamer
earning and profits are two different terms right? I don't think you can post profit if you in debt?
If i'm wrong... sorry I'ma noob
Most companies have debt of some kind or another. Equity, by its very nature, is expensive. Shareholders require a high rate of return for taking the risks of unsecured lending plus being last in line for liquidation in bankruptcy.
Debt holders, on the other hand, are more secured. They get the remnants of the company if it gets liquidated. Additionally, their debt payment is guaranteed, unlike equity. Finally, they have covenants built into the debt that puts the company in shackles.
Profitable companies can have debt.
They were forced out essentially. The company needed to signal changes, removing CEOs does that very well.
People still have hope for hector, so they keep him around.
I will respond to your PM soon.
Walmart isn't doing great because their profitability is going down and many people are doubting they can keep the same-store sales up. The company has many problems.
Not all companies go down with the general market. There are many counter-cyclical companies out there.
If AMD had not purchased ATI and withdrew from the CPU market, that would leave them selling approximately 0 products.
The AP says that Citi lost $6.5 billion in Q3 and may write down another $8 to 11 billion in Q4. That Q3 loss was due to a $9.8 billion write-down. Merrill "only" wrote down $7.9 billion (so far). Both stocks fell by more than a third from their June price. I have heard but can't verify that internal politics at Merrill wrt Mr. O'Neal were also less than pretty before this whole thing came to a head.
So the executives fell on their swords. Their replacements will come in, swear they will never permit such a thing to happen again, and try to rebuild confidence. They will pitch themselves as reformers that will cut out the rot created by their predecessors (and hopefully will actually do it), and life for the companies will go on.
Mr. Ruiz has not resigned because he has not felt there was enough pressure that he needed to. AMD's performance issues and the investment from Abu Dhabi are different from a single, catastrophic event like these write-downs. And Mr. Ruiz doesn't make a very good scapegoat for the performance issues (he didn't exactly design the new microarchitecture himself), and the Abu Dhabi investment isn't the sort of thing that would prompt a resignation. His fingerprints are most obviously on the ATI deal, but the market seems to be somewhat ambivalent about that.
Honestly the people that I have seen calling for Mr. Ruiz to leave have mostly been pissy forum trolls. It does not appear that there is a large shareholder outcry against his leadership, and AMD itself seems to have decent confidence in him. If either of those things change, he could be gone.
Front-end or back-end?
AMD has its only production front-end wafer fabs in Germany. They have an R&D fab in Finland (from ATI, which also got it in an acquisition), and have talked about building another fab in New York state (with large subsidies involved). All of their back-end package and test facilities are in China and Malaysia.
Wafer fabs are where all of the horrible costs are, and there is not a huge advantage to locating them in cheap-labor countries. Fabs need skilled labor, clean water, and minimal export restrictions. Intel is in the process of building a new fab in China as we speak, and has run into problems with restrictions on the export of advanced dual-use technologies (tech with potential military applications).
Intel's fabs are currently in Israel, Ireland, and yes, the United States. Assembly and test? China, Costa Rica, Malaysia, and the Philippines (list). These facilities are less capital-intensive and do benefit from being built overseas.
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