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News AMD facing Llano lawsuit

Discussion in 'Article Discussion' started by Gareth Halfacree, 2 Apr 2015.

  1. Gareth Halfacree

    Gareth Halfacree WIIGII! Staff Administrator Super Moderator Moderator

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  2. Corky42

    Corky42 Where's walle?

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    Maybe these investor should have followed the old adage that your investment may go down as well as up.
     
  3. sandys

    sandys Well-Known Member

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    I thought this was an April fool due to the date of the news and type of claim, stockholders eh :)
     
  4. schmidtbag

    schmidtbag New Member

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    Yeah... that will really help their investments flourish *sarcasm*. If this were a wealthy company, this wouldn't really be a big deal. I'm surprised that marketing team is still haunting AMD to this day.
     
  5. rollo

    rollo Well-Known Member

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    AMD lurching from one disaster to another it seems
     
  6. bawjaws

    bawjaws Well-Known Member

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    I'm sure you're joking, but the allegation here is that AMD knew that they were having significant problems with Llano that would have a serious negative impact on their bottom line (and thus share price) but they didn't make this information available to investors (or potential investors). In fact, the lawsuit alleges that AMD basically lied about there being no issues with Llano production.

    Would you knowingly invest in a company that was having major production difficulties that would lead to it taking a very heavy loss a short way down the line (especially given the nature of the business and the fact that today's hot product is tomorrow's paperweight)? Would you feel a little aggreived if said company assured you that everything was fine, despite knowing that it was not, which resulted in the value of your investment dropping by 74% when it became clear that things were not as hunky dory as you'd been led to believe?

    Your adage might be appropriate if it were "the value of your investment will go down" :D
     
  7. fix-the-spade

    fix-the-spade Well-Known Member

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    By the same token perhaps AMD should have had more transparency towards it's investors ahead of time.

    As a publicly traded company you don't get to shrug and say 'them's the breaks,' when the growth you've been promising and promising fails to materialise due to problems you knew were happening and failed to tell anyone about.

    I'd guess the stockholders have decided this is the only way they'll ever see any return on their investment, would they have invested at all had AMD told the truth?
     
  8. schmidtbag

    schmidtbag New Member

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    That to me is an interesting question. Though hypothetical, there are answers to it. Many people invest in companies because they're hoping to get more out of it than they put in. That's fine - obviously you need to make a profit. But unfortunately, that's ALL people care about, and they don't look into the fundamental reasons of why companies need investors in the first place. For example, Intel does not need investors. Every one of intel's investors could sell their shares and the company would probably still do just fine (financially). AMD, however, depends on investors. I may be wrong about this, but I'm guessing the initial purpose of investments or stocks was to basically borrow wealth from a reliable source in order to get a product mass-produced. These people knew they were taking a chance and might not have got their money back.

    tl;dr, the primary goal for investments should be to get products mass produced; making money should be the secondary goal.
     
  9. Corky42

    Corky42 Where's walle?

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    @bawjaws & fix-the-spade, I was going to say about if they knew and all that jazz but i was being lazy, sorry. :)

    You're right of course that it depends on if they knowingly lied or not but that, i would guess, is going to be near nigh impossible to prove.
     
  10. bawjaws

    bawjaws Well-Known Member

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    Sure, but there's a difference between a company issuing shares to raise capital, and existing shares being traded on the open market (or indeed being held by investors). When it comes to shares being traded on the Stock Exchange, there are rules in place regarding companies and their obligations to disclose pertinent information that might affect their share price.

    As far as I can see, there's no suggestion here than AMD had issued new stock - rather, this issue affected the value of all existing stock.
     
  11. Bloody_Pete

    Bloody_Pete Technophile

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    Not really, are they saying onething while the truth is the opposite...
     
  12. Corky42

    Corky42 Where's walle?

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    Whose truth would that be?
     
  13. NethLyn

    NethLyn Member

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    Hopefully console money will get AMD out of this jam or they just settle it to make sure the losses stay cut.
     
  14. rollo

    rollo Well-Known Member

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    AMD already got most of the cash they will get from consoles in lump sum payments. Prices on consoles usually go down as time goes on as well so profits dwindle there also.

    AMD need a product that people want before 2016 to really survive. If the proposed 390 is 5% faster than the 980 but used double the electric then I think we might see the end of AMD there and then. The Samsung rumours have come to nothing and they are running out of assets to sell to balance the books.
     
  15. beef1e

    beef1e New Member

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    The truth is out there!
     

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