AMD Faces Class Action Law Suit.

[afa7336]

AMD should just go private. They should do what they do best which is design awesome processors and just leave all the shareholder headaches behind.

The Abu Dhabi government which bought AMD's fabs and spun them off as Globalfoundries should just buy AMD go 100% private.

AMD will have access to cutting edge fabs again and wouldn't have to answer to any share holders which means they can do what they think is right no matter what.

Poor Dirk Myer resigned after the Bulldozer debacle. He's a brilliant engineer Budllzoer was conceived under the corrupt Hector Ruiz not Dirk was really sad to see Dirk leave.

 

Going private though, reduces the cash flow they have via stocks. AMD typically is a risky investment anyway, with a Beta of 2.21 (Higher risk, but higher reward if all goes well). Some day traders like higher betas, but for long term, its a no go in my book. But AMD has been on the downswing Market wise for several years now. Its EPS (or Earnings Per Share), is -.86, which is not good at all. The last time they actually had a positive EPS was 2011 from the charts I have access to. Going private you see, would I THINK be a bad move for them, because they'd end up going into the hole even more. And if GF tried to buy them, I think we'd see an issue with the merger as far as competition goes. Though I don't know enough about those laws to speak to it much. My mind, it has to do with AMD and Nvidia both using GF and AMD would be wholly owned by GF which would create issues.

 

I hate to make this comparison, but taking a look at Nvidia whose Beta is 1.36 (So pretty decent actually and fluctuates with the market better), and an EPS of .77 with a EPS non negative for a while they are in a better market position overall.

[EmmaLong]

I really can't see how there can be issues with a merger, after all Globalfoundries was in fact part of AMD.
Chasing behind shareholders and the board of directors is an absolute waste of time, I really do hope AMD goes private.
I don't think that the current CEO Rory Read has proved himself to be any better than Dirk Myer or even Hector Ruiz. Hector is the one responsible for putting AMD in the situation it is in the first place.
He's the one that spun off AMD's manufacturing.

Globalfoundries was in a very bad economic situation for several years after it split off from AMD. What kept them afloat is the affluent Abu Dhabi investment arm.

AMD can already bring cost effective products to market as a fabless company giving it a manufacturing edge would put Nvidia at a much tougher spot.
The savings on manufacturing alone would improve AMD's gross margins well into the double digit percentages.

AMD has always been one manufacturing node behind intel, I don't think much changed really AMD has always competed on cost and manufacturing plays an integral part of that.

[mr moose]

I really can't see how there can be issues with a merger, after all Globalfoundries was in fact part of AMD.

Chasing behind shareholders and the board of directors is an absolute waste of time, I really do hope AMD goes private.

I don't think that the current CEO Rory Read has proved himself to be any better than Dirk Myer or even Hector Ruiz. Hector is the one responsible for putting AMD in the situation it is in the first place.

He's the one that spun off AMD's manufacturing.

Globalfoundries was in a very bad economic situation for several years after it split off from AMD. What kept them afloat is the affluent Abu Dhabi investment arm.

AMD can already bring cost effective products to market as a fabless company giving it a manufacturing edge would put Nvidia at a much tougher spot.

The savings on manufacturing alone would improve AMD's gross margins well into the double digit percentages.

AMD has always been one manufacturing node behind intel, I don't think much changed really AMD has always competed on cost and manufacturing plays an integral part of that.

 

I can't see it,     While there is a load associated with being responsible to shareholders, most of that is tied up with being profitable, which they are struggling to do anyway and want to improve regardless of the shareholders.   It might be better long term, I just don't see it. If there was a merger I don't think Nvidia would struggle too much either. They are a large company that have ridden out the GFC quite well considering their product is not really required to be upgraded/replaced in order to maintain any form of short term financial viability.

 

 

And as much as I have disagreed with afa on a few other topics, on this one I actually agree, his break down of the situation is supported by the publicly available documents and appraisal of possible outcomes are quite plausible given the precedent set by other lawsuits of a similar nature.   

[EmmaLong]

I can't see it,     While there is a load associated with being responsible to shareholders, most of that is tied up with being profitable, which they are struggling to do anyway and want to improve regardless of the shareholders.   It might be better long term, I just don't see it. If there was a merger I don't think Nvidia would struggle too much either. They are a large company that have ridden out the GFC quite well considering their product is not really required to be upgraded/replaced in order to maintain any form of short term financial viability.

 

 

And as much as I have disagreed with afa on a few other topics, on this one I actually agree, his break down of the situation is supported by the publicly available documents and appraisal of possible outcomes are quite plausible given the precedent set by other lawsuits of a similar nature.   

The board of directors is directly responsible for AMD leaving the high end segment, back in early 2012 Rory Read made a statement saying that AMD is not going to directly compete with Intel anymore.

That's when the Steamroller FX processor SOC was canned and so was the one based on Excavator, as a consumer I would have benefited greatly had AMD not done that.

http://www.tomshardware.com/news/amd-intel-cpu-apu-processors,15741.html

Dirk Myer resigned because he disagreed with the board of directors, they wanted to get into the ultra mobile space as fast as possible.

He on the other hand believed that AMD should improve its competitive position against Intel in the traditional x86 space first. Essentially allowing AMD to stand back on its feet before stepping in the hyper competitive mobile market. This is a widely known fact.

So hypothetically speaking AMD being a publicly traded company is the sole reason why they're so far behind Intel in x86 performance.

Why Kaveri is power optimized for 45W, why we did not and will not get an FX refresh is a direct result of that.

[afa7336]

I really can't see how there can be issues with a merger, after all Globalfoundries was in fact part of AMD.

Chasing behind shareholders and the board of directors is an absolute waste of time, I really do hope AMD goes private.

 

Honestly my internal debate, and as I said I am not really clued in too well on the laws surrounding this, is that since GF is used by both, them acquiring AMD would limit who Nvidia could use since they would be a direct competitor, and lately they have become stricter on those kinda things. But again, I just don't know enough about it. Hmmm, research time for me I think, where is my coffee!

 

And as much as I have disagreed with afa on a few other topics, on this one I actually agree, his break down of the situation is supported by the publicly available documents and appraisal of possible outcomes are quite plausible given the precedent set by other lawsuits of a similar nature.   

 

Awww shucks. *grinds foot into ground and blush* But on serious note, I think thats the amazing thing sometimes. You find people that while you disagree with them on some topics, others you agree with them on. I've always said, disagreeing, arguing and debating isn't really a bad thing. If we agreed all the time, we'd have a very boring time. And there are things you've said, that I've liked because they make too much sense not too. I don't hold grudges, well, for most people. My Father-in-Law is just an ass.

[mr moose]

The board of directors is directly responsible for AMD leaving the high end segment, back in early 2012 Rory Read made a statement saying that AMD is not going to directly compete with Intel anymore.

That's when the Steamroller FX processor SOC was canned and so was the one based on Excavator, as a consumer I would have benefited greatly had AMD not done that.

http://www.tomshardware.com/news/amd-intel-cpu-apu-processors,15741.html

Dirk Myer resigned because he disagreed with the board of directors, they wanted to get into the ultra mobile space as fast as possible.

He on the other hand believed that AMD should improve its competitive position against Intel in the traditional x86 space first. Essentially allowing AMD to stand back on its feet before stepping in the hyper competitive mobile market. This is a widely known fact.

So hypothetically speaking AMD being a publicly traded company is the sole reason why they're so far behind Intel in x86 performance.

Why Kaveri is power optimized for 45W, why we did not and will not get an FX refresh is a direct result of that.

 

This has relatively little to do with whether a company is publicly listed or privately owned.  The board of directors chief objective is to grow and make money, it will either make good discussions and succeed or bad ones and fail, but at the end of the day being accountable to stockholders or a government will not negate a bad decision.  And on top of that every company makes bad decisions that cost money, it's just that amd wasn't (still isn't) in a financial position right now to be able to wear that cost. 

[TechFan@ic]

Pretty much what Emma said.
http://www.reuters.com/article/2011/01/12/us-amd-idUSTRE70A0D620110112

[Walter87]

Origin had the same suit with Battlefield 4... It'll probably go that direction too.

 

edit: by Origin I mean EA.

I believe there was potential Insider trading with the EA case though, where several executives or upper-management bought stock before the BF4 release data and sold it before they had their press release / quarterly earnings report for the quarter to announce the future expansions were on hold to focus on fixing the games problems.

 

 

Investors should know the risk of stocks and investments and shouldn't be capable of filing a class action lawsuit if they lost a bit of money. There have been many cases like this particular one where investors lost a bit of money and attempt to sue to get their money back.

[afa7336]

Investors should know the risk of stocks and investments and shouldn't be capable of filing a class action lawsuit if they lost a bit of money. There have been many cases like this particular one where investors lost a bit of money and attempt to sue to get their money back.

 

*rubs head* This isn't about risk! That's the issue that people aren't really understand, because of limited knowledge. If it is just risk, I agree, considering I play the market. Well, someone does it for me, but I digress. You can't lie to your shareholders, and that is what this case is about. Its actually against the Law to lie to your shareholders like what is alleged, and the facts that I can find support that AMD did. Only a court can settle it. There have been cases like this before where it was either settled out of court, or by a jury settlement. The bigger ones as a matter of fact, were by this same firm that is going after AMD. 

[TechFan@ic]

Honestly my internal debate, and as I said I am not really clued in too well on the laws surrounding this, is that since GF is used by both, them acquiring AMD would limit who Nvidia could use since they would be a direct competitor, and lately they have become stricter on those kinda things. But again, I just don't know enough about it. Hmmm, research time for me I think, where is my coffee!

Nvidia uses TSMC not Globalfoundries.

AMD uses Globalfoundries for CPUs & APUs, TSMC for discrete GPUs.

[afa7336]

Nvidia uses TSMC not Globalfoundries.

AMD uses Globalfoundries for CPUs & APUs, TSMC for discrete GPUs.

 

Ah, I could have sworn I read somewhere that they use GF. I stand corrected. Thank you sir.

[bac06]

Microsoft had the same problem for overestimating the Surface and Rt.

Nothing happened...

[afa7336]

Microsoft had the same problem for overestimating the Surface and Rt.

Nothing happened...

 

I think you are missing the point. Overestimating is one thing, it happens all the time, but telling your shareholders you have all these orders when you don't is another thing. Thats what AMD said, we have demand, we have customers when in reality they didn't. Thats how it reads from everything I read. That is illegal, especially when you consider they stated it to the SEC as well. Its called Securities Fraud.

[mr moose]

Microsoft had the same problem for overestimating the Surface and Rt.

Nothing happened...

Interesting you bring up MS and the surface.  I was thinking about it earlier in regard to this, Afa has already pointed out the main legal difference, however it is also interesting to note that when MS dropped the price of the surface to clear it's excess stock, the sudden uptake of users helped to push their stock price up.  This, I think, is a result of MS showing them that they are in control even though the market was not responding favorably to their products.  AMD on the other hand are not in a position to wear the costs and seems to be failing to regain control. This is whats causing their stock price to fall (essentially stock holders are getting cold feet and pulling out before their is any major damage to their portfolios.