Sign in with
Sign up | Sign in
Your question

AMD $5.60 and dropping

Tags:
Last response: in CPUs
Share
January 9, 2008 2:53:50 PM

Just a little while ago it was at $12 and some people thought that was too low.

How long does it take for it to become a penny stock? Maybe instead of buying the CPUs, I'll just buy the company when it gets cheap enough!

More about : amd dropping

January 9, 2008 3:10:58 PM

I wonder the same thing. Stocks tend to drop well below company value during "panic selling". Then smart money picks up the bargain and sends the stock surging in the other direction.

HOWEVER, "never catch a falling knife". Wait for true signs the stock has bottomed and is ready to bounce or change directions. A blip on the radar or an up day doesn't mean BUY.

Be careful. There are plenty of $5 stocks that end up sub-penny in the same year, even the same month. Bakruptcy has a way of doing that ;) 
January 9, 2008 3:32:17 PM

continuation said:
...Maybe instead of buying the CPUs, I'll just buy the company when it gets cheap enough!


Why would you want to do that? Most people buy (into) companies on the premise that they'll make some $ on thier investment. Do you see a clear path to that given current financials?

Related resources
January 9, 2008 3:41:57 PM

True enough, AMD is falling fast, but so are a lot of other stocks. Anyone look at how far and fast the bank stocks have fallen? The whole market is taking a bath at the moment. About the only things that aren't falling are the prices of food, gasoline, energy of any kind. of course, gold is going up fast as the dollar goes down. For those people old enough, this all looks a lot like the Jimmy Carter days when the erm used was "Stagflation", because income stagnated as the market went down, while the cost of things kept inflating. Suddenly its like 1978-79 all over again.
January 9, 2008 3:56:47 PM

Doesn't that mean I can dust off my Lynyrd Skynyrd LPs?
a b à CPUs
a b À AMD
January 9, 2008 3:58:01 PM

azfj60 said:
Why would you want to do that? Most people buy (into) companies on the premise that they'll make some $ on thier investment. Do you see a clear path to that given current financials?

Cause theres still a lot of potential in them, and it would be so cheap to buy them now. All they need is a good moneytary injection to get them going again and to get those products fixed.

I'll think the stock will fall close to $4 until it starts to climb back up....
January 9, 2008 4:00:31 PM

deuce271 said:
Doesn't that mean I can dust off my Lynyrd Skynyrd LPs?


Sure, if you can find a working phonograph on which to play them. :kaola: 
January 9, 2008 4:05:38 PM

sailer said:
True enough, AMD is falling fast, but so are a lot of other stocks. Anyone look at how far and fast the bank stocks have fallen? The whole market is taking a bath at the moment. About the only things that aren't falling are the prices of food, gasoline, energy of any kind. of course, gold is going up fast as the dollar goes down. For those people old enough, this all looks a lot like the Jimmy Carter days when the erm used was "Stagflation", because income stagnated as the market went down, while the cost of things kept inflating. Suddenly its like 1978-79 all over again.


No. According to the McDonalds Corporation, the dollar is looking good.
January 9, 2008 4:06:28 PM

Holy smokes. This isn't the market, Intel is up today.

WOW!
January 9, 2008 4:12:38 PM

Kari said:
Cause theres still a lot of potential in them, and it would be so cheap to buy them now. All they need is a good moneytary injection to get them going again and to get those products fixed.

I'll think the stock will fall close to $4 until it starts to climb back up....


They've had a bunch of "monetary injections" recently, in case you missed it, to the point of where thier debt load is almost, if not more than, thier market capitalization. I wonder what the folks who bought the $2.2B in senior notes think about the company that's only worth ~$3.08B now... Personally, I just don't see a path to return to profitability any time soon, let alone this year, despite what Hector says.
January 9, 2008 4:26:39 PM

I think hes on about the good kind of injection, where you dont have to pay it back lol. AMD needs serious paternal support i.e. by being bought by a much larger company to ensure they develop what they plan to asap not as funds allow.

The worst of their desicions and execution are behind them I think, now they're against the clock, make it until Phenoms are fixed and released, without being bought out and having enough cash to see the year out. I would say the continual drooping of the stock is the markets reaction to not having anything positive to react against. That is they/were waiting for three big things: q4 2007 results, Radeon x2 released & recieved positively and fixed Phenoms or at least news of solid progress on that front. There isnt a massive amount to go on lately, leaving us and the market to only speculate, and what with AMD's name being little better than mud right now, the direction is only, inevitably, down.

That all said this really should all be in another forum, right?
January 9, 2008 4:28:16 PM

spoonboy said:
That all said this really should all be in another forum, right?


No it shouldn't be.

If so, name the forum and provide a link.

Just because it is bad news for AMD doesn't mean it should be somewhere else.
January 9, 2008 4:29:16 PM

TechnologyCoordinator said:
I believe this has to do with AMD's first quarter earning call.

This link isn't working anymore, but perhaps it will start working again:

http://www.123jump.com/earnings-calls/Advanced-Micro-De...


Ouch! Double Ouch!!

From report:

Investor issues
1. EPS were a loss of $1.11 per share compared to a profit of .38 cents a share last year
2. Net income was a loss of $611 million, down from a profit of $184.5 million in the year-ago period
3. Sales sank to $1.23 billion from $1.33 billion a year ago

While no one can say for sure, it makes me wonder what the difference might have been if Phenom didn't have the errata problem and Barcelona hadn't received the stop shipment order.
January 9, 2008 4:33:47 PM

TechnologyCoordinator said:
I believe this has to do with AMD's first quarter earning call.

This link isn't working anymore, but perhaps it will start working again:

http://www.123jump.com/earnings-calls/Advanced-Micro-De...


sailer said:
Ouch! Double Ouch!!

From report:

Investor issues
1. EPS were a loss of $1.11 per share compared to a profit of .38 cents a share last year
2. Net income was a loss of $611 million, down from a profit of $184.5 million in the year-ago period
3. Sales sank to $1.23 billion from $1.33 billion a year ago

While no one can say for sure, it makes me wonder what the difference might have been if Phenom didn't have the errata problem and Barcelona hadn't received the stop shipment order.


I don't think this is current?

From the link:
Quote:
This summary is based on the first quarter fiscal 2007 earnings call conducted by Advanced Micro Devices, Inc. (AMD: chart) on April 19, 2007.
January 9, 2008 4:36:33 PM

I'm confused by it as well... I don't think it's right either. I got the information from Google Finance and the date of the article at the top say Jan 09 2008.

Cause if they posted a loss for Q4 of 600+M, there stock would have reacted much more severely.


However, my prediction for Q4 is a 450M loss.
January 9, 2008 4:47:54 PM

TechnologyCoordinator said:
No it shouldn't be.

If so, name the forum and provide a link.

Just because it is bad news for AMD doesn't mean it should be somewhere else.


General discussion on 'tomshardware.com' ? you may have heard of it TC :lol: 

Yes its bad news but no thats not why I say it shouldn't be here. And that its bad news for AMD is not something to throw at someone who says to you, yes you TC, that these threads might belong somewhere else.
January 9, 2008 4:51:26 PM

spoonboy said:
General discussion on 'tomshardware.com' ? you may have heard of it TC :lol: 

Yes its bad news but no thats not why I say it shouldn't be here. And that its bad news for AMD is not something to throw at someone who says to you, yes you TC, that these threads might belong somewhere else.


I said LINK IT fanboy.


There is no general discussions forum for CPUs, well actually there is, THIS IS THE FORUM.


LINK IT FANBOY.
January 9, 2008 4:53:23 PM

Since Baron_Matrix isn't here to comment on this subject I thought that I would step in and speak on his behalf.

First of all $5 a share for AMD stock will make the company more competitive in the stock market. This is part of their overall plan to compete with Intel. Just like lowering the price of their processors to destroy Intel, AMD is now lowering their stock price. Intel has already suffered a loss of about $4 a share since AMD has taken this approach. Soon Intel will have to compete at the lower pricing and drop their stock to $6-$7 a share. Of course Intel has much more overhead and this will hurt their company more than AMD.

By this time next year AMD will be back leading in Processor Performance and Stock price. Barcelona's new rev. will destroy anything Intel has on the Market.

Your Homey without a Poney,
BaronMatrix
January 9, 2008 4:56:14 PM

Major_Spittle said:
Since Baron_Matrix isn't here to comment on this subject I thought that I would step in and speak on his behalf.

First of all $5 a share for AMD stock will make the company more competitive in the stock market. This is part of their overall plan to compete with Intel. Just like lowering the price of their processors to destroy Intel, AMD is now lowering their stock price. Intel has already suffered a loss of about $4 a share since AMD has taken this approach. Soon Intel will have to compete at the lower pricing and drop their stock to $6-$7 a share. Of course Intel has much more overhead and this will hurt their company more than AMD.

By this time next year AMD will be back leading in Processor Performance and Stock price. Barcelona's new rev. will destroy anything Intel has on the Market.

Your Homey without a Poney,
BaronMatrix




funny, I thought that stock was based on price to earnings ratios, not how low you can sell it.
January 9, 2008 4:59:02 PM

surrealdeal said:
funny, I thought that stock was based on price to earnings ratios, not how low you can sell it.


Not AMD's stock. Ever since K10 was released AMD actually sets it own price because of how awesome their product launches are.

If you are lucky enough AMD will LET YOU buy their stock.
January 9, 2008 5:01:58 PM

surrealdeal said:
funny, I thought that stock was based on price to earnings ratios, not how low you can sell it.


Actually a companies stock price is the product of fluctuations in the genuflex index ratio. If you subtract the margins of the PE ratio to the market capitol you will get roughly the same number.

If the glove don't fix, you must acquit.


January 9, 2008 5:02:15 PM

but, AMD is on the NYSE! WTF?
January 9, 2008 5:06:01 PM

TechnologyCoordinator said:
I said LINK IT fanboy.


There is no general discussions forum for CPUs, well actually there is, THIS IS THE FORUM.


LINK IT FANBOY.



Your telling me you cant find general discussion on tomshardware.com?

Fanboy? Ive got an intel system! blah
January 9, 2008 5:06:16 PM

surrealdeal said:
but, AMD is on the NYSE! WTF?


Well in New York they are, but in Europe they are on the EUSE. It has different rules pertaining to the PE and DJIA.


I just WIKI'd it.
January 9, 2008 5:11:00 PM

Major_Spittle said:
Well in New York they are, but in Europe they are on the EUSE. It has different rules pertaining to the PE and DJIA.


I just WIKI'd it.


So, they're ass holes?
January 9, 2008 5:38:41 PM

Major_Spittle said:
Since Baron_Matrix isn't here to comment on this subject I thought that I would step in and speak on his behalf.

First of all $5 a share for AMD stock will make the company more competitive in the stock market. This is part of their overall plan to compete with Intel. Just like lowering the price of their processors to destroy Intel, AMD is now lowering their stock price. Intel has already suffered a loss of about $4 a share since AMD has taken this approach. Soon Intel will have to compete at the lower pricing and drop their stock to $6-$7 a share. Of course Intel has much more overhead and this will hurt their company more than AMD.

By this time next year AMD will be back leading in Processor Performance and Stock price. Barcelona's new rev. will destroy anything Intel has on the Market.

Your Homey without a Poney,
BaronMatrix


10/10
January 9, 2008 5:52:00 PM

spoonboy said:
Your telling me you cant find general discussion on tomshardware.com?

Fanboy? Ive got an intel system! blah


Hey so do the ATI 3870X2 presenters in CES, but they still work for AMD!
January 9, 2008 6:15:59 PM

spoonboy said:
Your telling me you cant find general discussion on tomshardware.com?

Fanboy? Ive got an intel system! blah



Link it Fanboy.

There's General Discussion for OVERCLOCKING, there's GENERAL HOMEBUILT, GENERAL NETWORKING, GENERAL MOBILE, GENERAL LAPTOP, GENERAL HANDHELDS, GENERAL GAMES, GENERAL VISTA/XP/NT/98


No General Discussion.


So can it fanboy. I'm sorry this thread doesn't support and cheer for your favorite company, but it's about AMD so it belongs in the CPU forum, not some imaginary GENERAL forum that you're making up.

Fanboys, yeeesh!

Leave the moderating to the moderators.
January 9, 2008 7:29:00 PM

To bring the conversetion back to the topic... Market cap of company below $3 billion at 2:15 pm. Wholly Kwap. We're at levels that not even the most avid AMDhater would have contempleted a couple of months back. This is like watching a plane fall outta the sky. Not good. For AMD, for Intel, for anyone. Can Ruiz be shot off into space yet?
January 9, 2008 7:33:07 PM

OlSkoolChopper said:
Can Ruiz be shot off into space yet?


There's already enough unwanted junk in space. However, there's a shark that's not very picky about what it eats in an aquarium not far from here.
January 9, 2008 7:49:09 PM

I'd feel bad for the poor shark. No living creature should have to eat sewage.
January 9, 2008 8:22:55 PM

AMD ADV MICRO DEVICES
Trade Research Add to Watch List Detailed Quote Option Chain
Last [Tick] 5.53[ + ]
Change -0.4700
% Change -7.83%
Bid 5.50
Bid Size 43
Ask 5.52
Ask Size 10
Open 6.06
Volume 50,963,802
Day High 6.06
Day Low 5.31
Previous Close 6.0000
Prev. Close Date 01/08/2008

I took a taste at $6 and a bit more at $5.50, but I love blackjack. I'll gamble on them, what the hell.
a b à CPUs
January 9, 2008 8:25:52 PM

Major_Spittle said:
Since Baron_Matrix isn't here to comment on this subject I thought that I would step in and speak on his behalf.

First of all $5 a share for AMD stock will make the company more competitive in the stock market. This is part of their overall plan to compete with Intel. Just like lowering the price of their processors to destroy Intel, AMD is now lowering their stock price. Intel has already suffered a loss of about $4 a share since AMD has taken this approach. Soon Intel will have to compete at the lower pricing and drop their stock to $6-$7 a share. Of course Intel has much more overhead and this will hurt their company more than AMD.

By this time next year AMD will be back leading in Processor Performance and Stock price. Barcelona's new rev. will destroy anything Intel has on the Market.

Your Homey without a Poney,
BaronMatrix



Post of the Thread
[:turpit:2] [:turpit:2] [:turpit:2]

5/5

Time to buy AMD stocks! (or eng. samples ;)  )

January 9, 2008 8:49:42 PM

AMD's stock has dropped 40 cents over the course of two trading days. surely thats not a good sign for AMD if that continues.
January 9, 2008 8:54:03 PM

Kari said:
Cause theres still a lot of potential in them, and it would be so cheap to buy them now. All they need is a good moneytary injection to get them going again and to get those products fixed.

I'll think the stock will fall close to $4 until it starts to climb back up....


They need more than that. They need time. Money wont fix phenom direwctly, engineers/techs working to identify and correct the problems in the design, correct the mask, update the manproc, and then test the new dies will. That takes time, and plenty of it and theyre in a catch 22. They need money to 'buy' time to fix their products, but they need to get their products fixed to make money off them. Their X2 line continues to perform well, but margins are low, and that line is being eclipsed even further by Intels new 45nm products, which will eventually force AMDs ASPs, or their sales lower, and thus their margins even lower. The last infusion of cash from Mubadala Development Company saw their investment go from $622 million to $271 million in value in about 1 and a half months time. I dont think that kind of performance is going to inspire other investment firms to risk large investments themselves, so they are kind of between the proverbial rock and hard place
a c 126 à CPUs
a b À AMD
January 9, 2008 8:54:23 PM

I saw this while at work and could have swore I heard a shtgun going off and a guy yelling:"MY OTHER EYE!!! WHAT DID YOU DO TO MY OTHER EYE!!!!"

(PS: Kudos to those who knows where I got that quote :p )
January 9, 2008 8:59:10 PM

Me thinks the Processor Market is undervalued right now and stock prices will soon explode like Thunderman's pants do when he is in the middle of a wet dream about a Barcelona overclocking to 3.3ghz.
January 9, 2008 9:35:03 PM

ImajorI said:
AMD ADV MICRO DEVICES
I took a taste at $6 and a bit more at $5.50, but I love blackjack. I'll gamble on them, what the hell.


I wish you luck with this. I've taken a few gambles in my own time, but this table is a bit too rich for me at the moment. As Turpit pointed out, AMD is in a bad place. It needs a billion or so for research, but it doesn't have that billion and there's no immediate prospect to get it.
January 9, 2008 9:46:10 PM

Major_Spittle said:
Since Baron_Matrix isn't here to comment on this subject I thought that I would step in and speak on his behalf.

First of all $5 a share for AMD stock will make the company more competitive in the stock market. This is part of their overall plan to compete with Intel. Just like lowering the price of their processors to destroy Intel, AMD is now lowering their stock price. Intel has already suffered a loss of about $4 a share since AMD has taken this approach. Soon Intel will have to compete at the lower pricing and drop their stock to $6-$7 a share. Of course Intel has much more overhead and this will hurt their company more than AMD.

By this time next year AMD will be back leading in Processor Performance and Stock price. Barcelona's new rev. will destroy anything Intel has on the Market.

Your Homey without a Poney,
BaronMatrix

My new favorite quote. You should email this to him. It deserves its own thread.
January 9, 2008 10:31:46 PM

major_spittle....i can't even fathom how that even makes sense? why would Intel want to drop their stock price (which would lower their value), unless they want to split the stock, but even for that reason it seems absurd, 20 dollars is still a good price for investors. This isn't the same as launching a CPU price war.
January 9, 2008 11:03:26 PM

You dont seem to get it... it was a joke of imitating what baron would say if he read this.
January 10, 2008 3:00:06 AM

I'm just curious.. how long would it take if this rate of loss continues for them to go bankrupt? Assuming they don't get a cash infusion or bought out.
January 10, 2008 3:48:25 AM

LAN_deRf_HA said:
I'm just curious.. how long would it take if this rate of loss continues for them to go bankrupt? Assuming they don't get a cash infusion or bought out.


If I'm reading the charts correctly, and I think I am, at the end of Q3 07, AMD had a cash and investment total of about $1,528,000,000. AMD was loosing money in the area of $600 million per quarter early in 07, but only lost about $400 million in Q3. It was expected to loose about $300 million in Q4, but that was before the Barcelona and Phenom problems, so that figure could go up. If AMD continues loosing in the area of $400 per quarter, it will be out of cash by this time next year. If AMD can cut its loss to $300 million, it can get by until Q2 09.

Hector has claimed that AMD will start to make a profit by Q4 08, but that was before the recession set in and before the Barcelona/Phenom problems came to light, so that claim is questionable at best.
January 10, 2008 4:34:50 AM

LAN_deRf_HA said:
I'm just curious.. how long would it take if this rate of loss continues for them to go bankrupt? Assuming they don't get a cash infusion or bought out.



It could take a long, long time to say the least. If any company is good at losing money year in and year out it's AMD. But you have to look way back into past history back when AMD was copying Intel Cpu's like k6 / k7 era chips.

The only time a company goes bankrupt is when they can't restructure, refinance loans etc. If worse comes to worse they'll file bankruptcy protection and restructure. The absolute worse thing that could happen right now is if the stock got delisted. This is likely to happen if the price keeps falling. You can read what will happen to owners of the stock if this happens from this link: http://www.investopedia.com/ask/answers/04/040804.asp

Given the sub-prime mess, I think most lenders would lean over backward to help AMD. If they don't they likely get nothing... which would you rather have? something or nothing?
January 10, 2008 7:39:50 AM

sailer said:
If I'm reading the charts correctly, and I think I am, at the end of Q3 07, AMD had a cash and investment total of about $1,528,000,000. AMD was loosing money in the area of $600 million per quarter early in 07, but only lost about $400 million in Q3. It was expected to loose about $300 million in Q4, but that was before the Barcelona and Phenom problems, so that figure could go up. If AMD continues loosing in the area of $400 per quarter, it will be out of cash by this time next year. If AMD can cut its loss to $300 million, it can get by until Q2 09.

Hector has claimed that AMD will start to make a profit by Q4 08, but that was before the recession set in and before the Barcelona/Phenom problems came to light, so that claim is questionable at best.


Dont forget the arab dosh:

http://www.msnbc.msn.com/id/21840227/

That brings cash up to 2 billion-ish,

...and if the us airline industry post 9/11 is anything to go by chapter 11 can save even the most screwed companies.

If AMD's value drops much further someone will buy them.
January 10, 2008 7:42:34 AM

TechnologyCoordinator said:
Link it Fanboy.

There's General Discussion for OVERCLOCKING, there's GENERAL HOMEBUILT, GENERAL NETWORKING, GENERAL MOBILE, GENERAL LAPTOP, GENERAL HANDHELDS, GENERAL GAMES, GENERAL VISTA/XP/NT/98


No General Discussion.


So can it fanboy. I'm sorry this thread doesn't support and cheer for your favorite company, but it's about AMD so it belongs in the CPU forum, not some imaginary GENERAL forum that you're making up.

Fanboys, yeeesh!

Leave the moderating to the moderators.


My favourite company? Ive got an intel system! ....and the last one was intel!

Get off your high horse TC u intel drum-banger.
!