Advanced Micro Devices - Moderated (AMD) Message Board

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To: Biomaven who wrote (222506)	1/9/2007 10:36:36 AM
From: eracer	of 272323

Re: And how exactly did you get to 5%? I should have wrapped my reply in the <sarcasm> tag. It was meant to show what magnitude the write-down would have if it were arbitrarily applied to the cost of goods sold rather than R&D, marketing or elsewhere. ...the effects of these writedowns are spread over many years or even decades...Best thing an investor can do in the short-term is to focus on cash-flows and hard numbers that are less susceptible to unavoidable distortion and/or manipulation. Will AMD get punished in short-term by writing-off $420 million now rather than spreading that cost out over years (or decades)? A $20 million dollar net profit should be easier to swallow than a $400 million loss for those hoping for a short-term bump upwards in the stock.