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AMD hits a new 52 Wk low: 2.78 a share. Is it a buy?

wonderwhoitswonderwhoits Member Posts: 128
in Hardware

Closed at 3.03 for the weekend.

http://finance.google.com/finance?client=ob&q=NYSE:AMD

It'd be nice to get in on AMD now if we knew they had an ACE up their sleeve...  but we don't know.  It would seem that AMD has a good amount of cash on hand that will allow it to continue operations for quite some time without a profit.  Not sure how much lower their stock can go though- the deal with the arab fabs is going to add 100 million shares of stock to the total outstanding, dilluting the stock... Same thing that happens to a dollar when you print more money.

I've got my eye on it though.

Comments

  • Craz_zCraz_z Member Posts: 34

    I don't know man. I would hold on until next quarter at least. A lot of people, my friends included, buy on the notion of "it's at the 52 week low, it can't get much lower" mantra. There's a proverbial glass floor here, and it shatters easily.

    Looking at the financials, AMD is a well managed company. I think they use their assets in relation to the profit they generate well, and they have a competitive debt to asset ratio comensurate with other competitors in their sector. As far as that goes, I think they're worth investing in, but it's the timing that counts.

    Lately, looking at the trends in the tech sector, I would expect tech related sales to probably decline all the way through the holiday season, probably well into 1Q FY2009. I would look at purchasing the stock around FEB or MAR 09. You're definitely going to see all manner of things occur. Look at what's been hapening with VW/Porsche lately. They have essentially generated investor interest by purchasing more stock in their company, I wouldn't be surprised to see AMD do the same, or see investors with substantial holdings purchase more stock. Plus you can wait till DEC and see a better look at the Q4 financial analysis.

    It's all also worth noting a general advirsory in purchasing until these damned credit markets get a little more stabilized. Lord only knows how heavily they've leveraged things at AMD, or what their true exposure has been.

    I'd just wait it out. Most analysis would probably rate this a hold, maybe even see a downgrade in some tech stocks here. Just be patient, I'd rather buy on a upswing and ride an upward trend late to make a little money, then have this stock drop and lose money.

     

    "Woah....Wait......Dude, am I driving right now?"

  • Craz_zCraz_z Member Posts: 34

    Just to follow up, here's a little bit of positive news here about the stock.

    http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B1514FA6A%2D442B%2D4DFB%2DB3EB%2DC60952EA7A57%7D&dist=WSJfeed&siteid=WSJ

    But really, I'd still wait till next quarter. AMD did announce they achieved a much narrower loss in Q3 than expected. It's just so hard to tell how consumer confidence is going to be this holiday season.

    "Woah....Wait......Dude, am I driving right now?"

  • batolemaeusbatolemaeus Member CommonPosts: 2,061

    I wouldn't put all my money on them, but past experience shows, that Intel and Amd usually have their strong and weak phases.
    In other words, currently Intel has a good time. The last times this happened, it took only a few years until Amd strikes back, gets lazy again, and lets Intel recover. Then history repeats.

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