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AMD Announces $4 Billion Share Repurchase Program

btarunr

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AMD (NASDAQ: AMD) today announced that its Board of Directors approved a new share repurchase program. Under this program, the company intends to repurchase up to $4 billion of outstanding AMD common stock. AMD expects to fund repurchases through cash generated from operations which have been strengthened by the company's strong operational results.

"Today's announcement reflects our confidence in AMD's business and the successful execution of our multi-year growth strategy," said Dr. Lisa Su, AMD president and CEO. "Our strong financial results and growing cash generation enable us to invest in the business and begin returning capital to our shareholders." Under this program, which is designed to return value to AMD stockholders, offset dilution from stock issuances, and reduce share count over time, the company will repurchase stock in the open market. This repurchase program has no termination date and may be suspended or discontinued at any time.



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A corporation will corporate. Why use the money from profits to improve availability of products and for research when you can make your shareholder richer and Lisa can get a fat bonus?
 
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I'm not a shareholder or something, but could someone explain what it means ? Thanks.
 
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I'm not a shareholder or something, but could someone explain what it means ? Thanks.
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Thanks "mtcn77". Now it's clear ;)...
For the time being, AMD has been extending its financial arm by issuing more company shares. I recall they did it in the past few years when they needed cash to make bond payments. They succeeded doing so because their share value didn't change after the fact, but that is only necessary - or feasible - when you are growing. Not when you are settling into a market, so there is a growth in expenditure and there is restriction phase when you make the actual profit, or drop the loan risk liability.
 
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Besides returning to investors, another reason i've read about is guarding against short sellers, as their is no specified date and buyback orders can be initiated at any time.
I'm not into investing so i don't know how true that is, just what i've red on the web.
 
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A corporation will corporate. Why use the money from profits to improve availability of products and for research when you can make your shareholder richer and Lisa can get a fat bonus?
You're being silly. Availability depends on TSMC.

And it's a company, part of their goals is to keep shareholders and investors happy, this kind of thing is bound to happen at some point.
 
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I'm not a shareholder or something, but could someone explain what it means ? Thanks.

A real answer means that the business can focus more on it's customer's needs than it's stockholder's demands for returns on their investments. A business will launch an IPO (initial public offering) in order to raise money and being that this is technology a lot of money is needed for R&D. By reducing the shares of their company now (before the value goes up again) they can buy back their own stock, regain more control over their operations and focus on customers.
 
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