AMD - Advanced Micro Devices, Inc.

Description

The Company is a global semiconductor company with facilities around the world. It provides processing solutions for the computing, graphics and consumer electronics markets.

Bull Argument

Vendors (IBM, Dell, Apple, etc.) do not want to see competitor Intel in a monopolizing position, and Intel will not be able to sustain the price wars.  AMD's merger with graphics processor manufacturer ATI and their strong roadmap for servers will pull them out of the red in the long run as they expect to reach profitability in 2008.

Bear Argument

AMD carries a large debt load (over $5 billion), has reported four consecutive quarterly losses and doesn't carry enough cash flow to support their product cycle.  Factor that in with supply and yield issues , executives jumping ship, and delayed product launches and you have a recipe for bankruptcy.