Analyst sounds AMD cash-flow warning

A US analyst has expressed "increasing concerns" that AMD is heading toward a cash-flow crisis even a shareholders' ears prick to whispers that a private equity company is looking to buy a stake in the chip maker - or even the whole kit and kaboodle.

AMD's cash flow was questioned yesterday by American Technology Research analyst Doug Freeman, who told the firm's investor customers: "We were surprised to see AMD shares rally yesterday given what we believe to be increasing concerns about cash flow at the company... we think management will be forced to come to the capital markets for operating cash before the end of the summer."

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News source: The Reg

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A VC company says its target company may be running out of cash? Who didnt see that coming?

This seems a little illegal - declare a company as running broke, drive share price down, buy company real cheap, shares go back up to previous levels

Well AMD did just get ATI. This sort of thing is expected when companys take over companys.
It's like Vodafone in the uk has alot of debt, mostly because it is eating little companys up.

Not rearlly many companies sit in the red as long as they have enougth capital and stuff like property to ofset the debt then it makes no difference.

In the same way if ATI was worth more than they borrowed to buy it then it strengthens. Mergers happen all the time in business.

FYI, AMD had to borrow a LOT of money for the ATI acquisition. It was a bad move to begin with since they didn't have enough capital to purchase ATI in the first place.

norseman - shutup, just because you think they are fine, doesn't mean they are. There are plenty of companies who have gone bankrupt who had "MANY new partners" to try and get them out of it.

This is a complete joke. What else will the reg think of next? AMD is making A LOT of money at the moment.
They have MANY new partners because of the lawsuit against Intel and their tactics.
Ignore this story.