That's plain obtuse. Large public companies that fail to execute pay the price and go bankrupt all the time. Kodak, SGI, Cray, Nortel, and many others. Heck, IBM had a near bankruptcy experience in the 1980s. It can happen to any company.
Not only can AMD go bankrupt, but it is certain to do so unless something radical happens in the next two quarters. There's nothing on its official roadmaps that have any possibility of competing with Kepler, sandy Bridge, Romley or Knights Corner. ARM server chips are more than a year away and with nothing to stop the erosion of AMD market share in GPUs and CPUs between now and then, bankruptcy is absolutely unavoidable.
The news the other day that management is NOT shopping the company around pretty much seals AMD's fate. With it's below-junk-bond credit rating, no one will lend AMD enough money to keep it afloat. That leaves sale of all or part of the company as the only remaining credible method of survival.
It's not the first time that AMD senior management has shown itself to be totally out of touch with reality. Let me remind you of Rory's comments during the Q2 2103 CC:
"Llano is an important product throughout the balance of this year and into 2013. It's very relevant to leverage both of those solutions as we move forward, and we'll continue to do that."
Got that? Llano to remain important to AMD revenues from Q2 2012 "into 2013".
But then look what happened Just three short months later, long before 2013:
"This [$100 million inventory] write-down was the result of lower-than-anticipated future demand for certain products and mainly comprised of the first-generation A-Series APUs codenamed Llano."
How is it possible for a CEO to misunderstand the market this badly? How could any competent leader of a semiconductor company believe that a product was viable for another year, only to find that the product wasn't even viable during the next quarter? This fool and his clown posse are delusional. Just like Llano was obviously dead and Rory should have known it, the time for AMD to star selling off lines of business is overdue, but he doesn't know it.
If you pitiful longs want to see even a penny of the money you've dumped into AMD shares, I suggest you start a shareholder revolt to oust this clueless oaf and try to get what you can for the sellable bits of this sinking derelict of a company.
Sentiment: Strong Sell
noway Amd will go below 20, noway it goes below 15, oh no way it goes below 10, oh noway it goes below 5, man noway it goes below 2, well it never will be its lowest level in its history... No way Kodak will ever declare Ch11, No way American will ever file Ch11 ...your right No way...
With the recent insider buy, I don't believe they are going BK either but don't count on 8 next year. I would be happy with 4 but we need to see what AMD is going to do to get us there. There have been some positive comments out there in the past few days but nobody is believing it so the stock price continues to drop. Depending on the overall market conditions will determine the price over the next few weeks. I think it has bottomed but the market in general has not bottomed and many are anticipating the CLIFF.
Yes, Lisa Su bought 48000 shares and that is very positive news! Pumpers here keep saying she sold, not true. Plus, she would not buy just before AMD would be planning on a sale. SEC would be all over this. Techs are doing pretty bad right now, even Apple got slapped around today.
Sentiment: Strong Buy