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Advanced Micro Devices (AMD) is trading up +.81 or 6% today on LBO rumors. If you’re in a gambling mood today like Chris "Jesus" Ferguson, check out the July ‘07 $17.50 calls, trading for about $100 per contract. The Masters think an LBO is laughable and the chances are slim that it could actually happen. AMD is trading near a 52 week low with shares trading just $1 above the year long low. Consider that AMD is working on new CPU’s that will be integrated with ATI Video cards but that won’t be ready until early 2009. By that time Ferguson should have 4 more WSOP bracelets. AMD will have the ante ready and ahead of Intel (INTC) at that point, similar to Sprint (S) with their Wi-Fi system. It’s an ace up the sleeve and could make AMD the house leader with the most chips on the table.
If you want to read more about the LBO here are the stories, it’s really the same stuff but it passes the time at work when you don’t feel like working. Just so you know, LBO stands for Leveraged Buyout - a strategy involving the acquisition of another company using a significant amount of borrowed money (bonds or loans) to meet the cost of acquisition.
But back to Ferguson, the guy was playing poker before age 10. In college he honed his skill on IRC playing poker for play money in chat rooms. In 1994 he began playing in tournaments in California and in 1995 entered his first World Series of Poker. Ferguson beat T. J. Cloutier at the main event of the 2000 WSOP to win the $1.5 million prize. Since then, he’s been walking on water and as of last year his career winnings exceed $5.7M. 1-2-shabadoo!

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