With AMD's woeful acquisition of ATI, the company has taken write-downs and charges for months. There is no doubt that AMD made a strategic error in its purchase of ATI but how long can the beleaguered chip maker bleed dollars from its corporate veins?

$948 million in charges were taken by the company on July 11, 2008 and $880 million of these charges were ATI related. AMD will probably post yet another loss when it reports earnings on July 17, 2008.

The stock is at a five-year low and management does not appear to have the vision necessary to dig out the company from the hole they have created for themselves.

Indeed, on Thursday, July 17, AMD replaced its CEO as the company reported its seventh quarterly loss in a row.

This prediction is that AMD/ATI will be the target of a takeover bid before 12-31-2008. For this prediction to be judged, a takeover bid for AMD must be publicly announced before 12-31-2008. This takeover can be in any form; friendly, hostile or reverse.