morning update ... 04 10 07

Further signs taht subprime issues is spreading to other higher rated assets. -American Home Mortgage Investment, a real estate investment trsuts or REIT, said that its 1Q profit would be lower, half of what analysts estmated, $1.06 per share. Earning will be $3.75, instead of $5. -The company had to write down around $500 million of high quality securtities. -Few interest for its Alt-A loans. It is not alone. A week earlier, M&T bank Corp, partly owned by Buffet's Berkshire Hathaway, cut its forecast too because of weak demand and higher default on Alt-A mortgages. AMD cust its prediction for first quarter revenue again. It had acknowleded taht the company would miss the revenue target, but the magnitude of the shortshall was more severe than Wall Street had anticipated. -expects revenue of $1.23 billion, well below analysts' average forecast of $1.55 billion, as reported by Thomson Financial. AMD had originally expected revenue of $1.6 billion to $1.7 billion, but warned in early March it wouldn't meet that forecast. -restucture its operations to cut costs and reduce spending ( on a new manufacturing capacity) by $500 million. -reasons: a.competition driving down the price b.demand is a.most problems can be traced to improvements in Intel's product lines.