AMD Stock

I know this thread probably doesn't belong here... but I don't know where else to put it.

I'm 17 and I'm thinking about starting some long term investing for retirement or whatever. It's never really to early to start saving. And right now would be the best time to buy some stock with long term goals in mind. Stock prices have plummeted recently, and while I might lose some money at first, in the long term I should make some money.

So I was thinking about buying some AMD stock, which is currently at $2.15. My question is if this is too risky? Do you guys think AMD will be going bankrupt anytime soon?

And I just don't know a whole lot about stocks. Like if another company buys AMD, will my stock still be valid? And even though I'm only 17, I'm fairly knowledgeable and have had stock before, but I just want to make sure I understand all of the risks before I start buying some stock.

Thanks to all who reply.
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  1. AMD is not going anwhere fast if that is what you want to know.
  2. yadge said:
    Do you guys think AMD will be going bankrupt anytime soon?

    no chance. AMD will still be alive kicking after your gone...
    yadge said:

    Like if another company buys AMD...

    I dont think any one company had deep enough pockets to even think about it.
    AMD bought ATI not so long ago.
  3. If they go bankrupt you will get NONE of your money back. If they return to profitability the stock price will probably double, quadruple, or perhaps go even high in a matter of a year or two of the return to profitability.

    I would like more at long-term investing in something with tax advantages, like a 401k or something like that.
  4. Ok guys, thanks for all the information.
  5. TechnologyCoordinator said:
    If they go bankrupt you will get NONE of your money back. If they return to profitability the stock price will probably double, quadruple, or perhaps go even high in a matter of a year or two of the return to profitability.

    I would like more at long-term investing in something with tax advantages, like a 401k or something like that.


    The 401k's at my work dropped by about 19% last year. I dont think the people that have been investing in it for 20+ years will agree that that is a sound investment. 401ks are a scam unless you play it extremely conservative....but then your better off with just a simple high interest savings account. The money in that savings account wont just dissapear because of a bad economy.
  6. or it will disappear very quickly... depends how bad the economy really is ;)
  7. FDIC...
  8. spathotan said:
    FDIC...


    Only have enough money to pay out about 1% of deposits; OK if a small bank goes bust by itself, but useless in a systematic collapse.

    Sure, you'd probably get your money back in twenty years, but by then $100,000 will buy you a cup of coffee.
  9. Yeah, my dad just lost a bunch of money in his 401k. When I have a career I'm sure I'll do the whole 401k thing. But there's nothing wrong with side investments.
  10. that better be the best damn coffee in the universe
  11. spathotan said:
    The 401k's at my work dropped by about 19% last year.


    I would have been happy if mine only dropped 20%. The company that manages our 401k plan had the brilliant idea of making 90% of our investment options be comprised solely of financial company stocks. As a result the average decrease in value was 40+% for us.
  12. Lee-m said:
    no chance. AMD will still be alive kicking after your gone...

    I dont think any one company had deep enough pockets to even think about it.
    AMD bought ATI not so long ago.


    No chance? Many financial analysts would beg to differ with you :). AMD's fate is pretty much in the hands of Abu Dhabi, Intel, IBM and others, not its own.

    AMD still owes over $5B on the ATI purchase, so the killer debt would be what deters a buyout unless AMD does go bankrupt and defaults. Then a company could step in and buy up the pieces it wants at rock-bottom prices since the debtors already got screwed.

    AMD has about 640M shares of common stock issued, but dunno how much is voting stock. If 100% of it was, then it would only take 321M shares at $2.15 per to get 51% control, vote out the Board and install your own. In other words, Bill Gates could buy 10 AMDs and not break a sweat :). If so, I would hope he'd fire Hector Ruiz at least 10 times over...
  13. To the OP: I suggest you start reading the financial news such as MSN Money - it's a quick and simplistic start but they have the occasional good story in there. For example, I saw one recently about how the oil stocks were depressed, with light sweet crude trading under $40 a barrel or thereabouts for the last 4 months. Oil is a pretty much non-renewable resource, and once the world economy picks up, it's like to double or triple again with the US, China and India bidding up the price. Since the new US administration just delayed the offshore drilling and western reserve leases, it's a cinch the US won't be adding much to the world's supply in the next 15 years or so.

    So you could possibly double or triple your investment in a couple of years - not a bad return on an essentially safe investment.

    OTOH, AMD is pretty risky. For one thing, tomorrow I think they will get another stockholder vote on the Abu Dhabi fab spinoff and issuing more stock, which will dilute prices even further. And some analysts don't think AMD will be around a year from now, if the economy doesn't pick up soon.
  14. AMD is a long term 1-3 year investment...And you can rest assured they will not go out of business anyone who say's otherwise has no idea what they are talking about.

    AMD is considered a national security and our goverment wont let them die off to be sold to the hounds from all corners of the globe. Our goverment doesnt want that kind of technology in the hands of just anyone.

    I would say invest something small maybe a $100 becuase you have to remember that every sector in the tech segment is way down! AMD has lost less compared to other companies like Sony and SM radio for example. When the economy turns around ALOT of stocks will skyrocket some will improve by over ten fold!

    Even if AMD's stock were to go up to an easy $10 a share in a year and a half and you originally paid $2 for a share and bought 50 shares you just made $500!

    Remember it's times like now that people will make vast fortunes when this economy turns around its those smart people who can see ahead and tell what will double triple or more.
  15. Personally I think you should invest in a market that is actively growing (green energy, medical), not in a saturated market. AMD in this case is pretty much trapped in a saturated market, and facing a formidable opponent. Given that AMD's current portfolio does not include a strong mobile platform, I would highly recommend staying out of AMD's stock. But of course, if you're looking for short term gain (<1 year), you can invest in AMD's stock, and make a 30~50% gain when the market comes back.
  16. spathotan said:
    The 401k's at my work dropped by about 19% last year. I dont think the people that have been investing in it for 20+ years will agree that that is a sound investment. 401ks are a scam unless you play it extremely conservative....but then your better off with just a simple high interest savings account. The money in that savings account wont just dissapear because of a bad economy.



    20+ years.....

    1989 - Dow 2,000
    2009 - Dow 8,000

    Not too shabby, but what is even better is if you were to look at it when the dow when it was 14,000, that's a HUGE gain. Only a fool would have most of his money in stocks at or near retirement.

    Putting all your money on one stock, especially one like AMD is foolish. I live in Detroit and I know too many old farts that worked for GM or Ford that had nothing but their pension and a ton of stock in their former automotive company, FOOLISH!

    401k's offer tax benefits and long term growth. If you are planning for retirement, this needs to be heavily considered. You can't just take the worst case scenario (2008 stock declines) and use that to declare 401ks as poor investment tools.

    I actually made money on my 401k that I started last year because my employer matches 25% of what I put in (and also because I had no money it before feb of 2008).

    Just about everyone dealing with stocks has lost money in the last year. 401ks allow you to invest long term with tax benefits in a large mix. Companies such as fidelity allow you to get in funds with a target retirement date, and the closer you get to the retirement date the "safer" the investment mix gets.
  17. At around $2.00-$2.50 per share currently... its hard to say it's not a great investment opportunity. I bought in around $4.50 because that sounded like a great deal at the time LOL.

    I sold all my shares, then it dropped some more and I bought in and picked up an additional 50 or so shares. I think the market is going to settle down eventually. As a first time stock buyer, it hasn't been the best experience. I picked the wrong time to start playing in the stock market since its really volatile right now. UP, Down, UP, Down.

    I don't think AMD is going anywhere though. They make a good product, and lets not forget they own ATI which as far as I'm concerned is at the top of the graphics game.

    If I'm on a budget for a build, I'm going AMD all the way. I decided I was pretty much wasting my Q9450 system I had, so I parted it out and went w\ an AMD 6000+ w\ 8gb ram, an hd3870, and 2 raptor's, total downgrade cost for the ram, cpu and motherboard was $170, sold most of my other components for around $650. Computer runs like a dream.
  18. xx12amanxx said:
    AMD is a long term 1-3 year investment...And you can rest assured they will not go out of business anyone who say's otherwise has no idea what they are talking about.


    Since AMD has lost a total of several billions of dollars over the last 9 straight quarters, has seen its cash/liquid assets drop $800M in 2008 to just $1.1B, is struggling under the $5B debt from buying ATI, and has its CPU marketshare drop from 22% to 19.3% according to IDC, and with Q1 and Q2 2009 prospects looking even bleaker, AMD is at best a risky gamble. Abu Dhabi has already 'renegotiated' the buyout deal once in December, giving AMD some $160M less; they could easily do that again or cancel it outright due to their economy hurting in the global financial crisis.

    Quote:
    AMD is considered a national security and our goverment wont let them die off to be sold to the hounds from all corners of the globe. Our goverment doesnt want that kind of technology in the hands of just anyone.


    Have you been watching the stimulus package negotiations in Congress? Taxpayers are fed up with the gov't bailouts, assuming that is what you mean. I seriously doubt any elected official would propose a bailout for a company that has been seriously mis-managed as AMD has the past few years, ever since Ruiz took over.

    Quote:
    Remember it's times like now that people will make vast fortunes when this economy turns around its those smart people who can see ahead and tell what will double triple or more.


    All the OP has to do is check similar AMD business threads here from 18 months ago, when AMD stock was still above $14, and note all the "experts" advising to buy, buy, buy if it went below $14. They pointed to the historical high of $40 and indicated it was just a matter of time before AMD's stock price would return to the glory days. Funny how none of those posters are around now...

    My feeling is that AMD will make it only if the Abu Dhabi deal goes through, which also depends on Intel not yanking the x86 license.
  19. fazers_on_stun said:

    My feeling is that AMD will make it only if the Abu Dhabi deal goes through, which also depends on Intel not yanking the x86 license.


    Technically you don't even need an x86 license. The licensing period for patents only runs for 20 years and this period has long since passed for the original x86 instruction set which has been around since the late 70's. What is currently part of the convoluted cross-licensing agreements are the myriad of modifications to the instruction set (x86-64,MMX, SSE, 3DNOW, etc.) that have been patented by both Intel and AMD over the years. It's a situation where Intel holds the rights to some of the intellectual property AMD needs and vice-versa. Theoretically Intel could decide to withhold a license for MMX and SSE in order to hamstring AMD, but that would likely result in AMD withholding a license for x86-64 which would similarly cripple Intel.
  20. The best time to buy stocks is when the majority has stampeded out of the
    market. There are a lot of companies at historic lows and this is one of the
    several opportunies you will have in a lifetime.

    Keep in mind that about 90% of your market investments should be in
    companies with good histories and past earnings. The other 5%-10%
    can be in more speculative stocks like AMD and other companies. This
    is a pretty volatile market but as CNBC has reported, there are signs of
    a gradually upturn in the economy and if there is a credible resolution to
    the credit and mortgage situation the bulls are going to run over the bears.
  21. TechnologyCoordinator said:
    If they go bankrupt you will get NONE of your money back. If they return to profitability the stock price will probably double, quadruple, or perhaps go even high in a matter of a year or two of the return to profitability.

    I would like more at long-term investing in something with tax advantages, like a 401k or something like that.



    http://www.youtube.com/watch?v=Z1EJKifq6JM&feature=related


    AMD is forward thinking.

    Intel isn't making any effort to top this system or match the price/power ratio AMD has.

    Cinema 2.0 is going to change Hollywood and gaming. There's a lot of money to be made there.
  22. I had some extra cash laying around making something like 0.001% in my IRA. So I bought 1000 shares of AMD just for fun a couple weeks ago @2.11. I think that AMD stock will be more in the 4-5 range in 6-8 months. Not wonderful, but good enough if you are in at 2 bucks.

    I did buy some AMD earlier in the year @5, the luckily dumped it @6 before it slid. Even if they are losing cpu chip share to INTC, they still have ATI which is still producing products that are competitive with NVDA.
  23. I have to agree with TC, BTW its been a while.

    A company can make a lot of things and hell they bought ATI yes. But that means nothing if they do not make money. Hell Ford makes cars. In fact a lot of their newer cars are damn good cars. But are they making money? No. So their stock goes down, they have to cut jobs and hope they break even soon enough to stay in business or get the Government to bail them out.

    thats just an example BTW. ATI itself is not enough to keep AMD afloat. They need more. They need to start producing more and more chips. As many as they can to sell as fast as they can. Hell the server market is still theirs. I would hope they would be focusing all of their efforts on that since it wont be long until Intel releases Core i7 into the server market with a much faster QPI and quad channel DDR3. And since we don't fully know what it can do there they should be worried as thats their main money maker.

    If they lose that they wont do much better sooner unless they find a way to open up another big market and keep that as a good cash influx.

    but chances are that they don't currently have th resources to open up anything else since most of their cash goes towards paying ATI off.

    Overall though since I do not think that AMD will dissapear I think its current price would make it a decent buy as would buying Intel or any other stocks that have lost a lot and stableized.

    Oh an one more thing, technically since the FAB deal went through no AMD does not make anything in house much like the GPUs never were. So pretty much now AMD is a CPU designing company with another FAB to produce them.
  24. While it is likely that AMD will return to profitability at some point, given the tech climate right now, it is not yet time to invest in tech stocks (which always get hammered when bad times hit).

    Right now, the best advice is probably simply to get out of the market. I've done decent over the past year, and managed to GROW my 401k, but now is not a good time to invest at all, period.

    You know what will rebound too; tech stocks will recover quickly, oil will at least double (minimum) over the next 4 years; the question is can you get in and out quickly enough.


    My overall advice: If you wouldn't buy stock at its current listed price, its time to sell.
  25. Time to sell? You want to buy low sell high, not the other way around. The only reason you would want to sell is if you think the company you are invested in might go bankrupt. Or if you know you need the money now or soon, and the prices won't go up before you need it. It's almost guaranteed that most stocks will go up within the next few years. Almost all stocks have taken a pretty big hit and after we get out of this recession their prices should eventually climb up to the "normal" price. That's why right now is the best time to invest. It's just a little bit risky.

    But anyway, I've been doing a lot of thinking and now I'm not sure if I want to invest in AMD. I've been thinking about maybe investing in a solar power company, because I think solar power has a lot of potential. But then there's also so many of them and it would be hard to pick the right one. And also despite it's huge potential to really take off, it also has potential to be a pretty big flop. So I'm not really sure.

    It just seems pretty likely to me that AMD (if it doesn't go bankrupt) will likely quadruple it's stock price in the next few years. So it just seems like a pretty good choice to me. It might go down more before it goes back up, but with this economy it's almost impossible to not make money once the market comes back.

    But it's been interesting and helpful reading both sides of the AMD argument. I'm still not really sure what I'll end up doing.
  26. Just_An_Engineer said:
    Technically you don't even need an x86 license. The licensing period for patents only runs for 20 years and this period has long since passed for the original x86 instruction set which has been around since the late 70's. What is currently part of the convoluted cross-licensing agreements are the myriad of modifications to the instruction set (x86-64,MMX, SSE, 3DNOW, etc.) that have been patented by both Intel and AMD over the years. It's a situation where Intel holds the rights to some of the intellectual property AMD needs and vice-versa. Theoretically Intel could decide to withhold a license for MMX and SSE in order to hamstring AMD, but that would likely result in AMD withholding a license for x86-64 which would similarly cripple Intel.


    Are you sure x86 is covered only by patents? What about copyright? That's good for something like 50 years IIRC. I know software can be both copyrighted and patented (well, it has to be claimed as a method or stored on a computer readable medium to get around the permissible categories of invention statute).

    But if covered only by patents then I agree the original x86 patent would have expired long ago, and only the patented extensions would remain in effect.

    That would be good news for the guy in a recent thread, who wanted to make CPUs using a blowtorch, metal and a hammer! :sol:
  27. Quote:

    Your a very typical steriotype who fluant's his opinion as fact and spout's rubbish all the while making wild accusation's....Fazer is just a good ole useless troll who never posts anything intelligent about AMD and has his facts all jacked up while proclaiming AMD is going to go out of business TOMARROW!

    You two have no idea how this economy and investing work's...Have fun saving your pennies while us informed people make good money off bad new's.


    LOL - I'm so glad I'm appreciated in my own time.

    If pointing out the facts about AMD's economic position and the dangers of investing in them to the OP makes me a fanboy, so be it. All you offered was your unfounded assurance that AMD would never go out of business. Are you willing to back that up with a reimbursement to the OP if he follows your advice and loses all his investment?

    Didn't think so.

    This thread was going along nicely with everyone being civil, until you popped in and crapped on it.

    You are entitled to your own viewpoint but you are clearly not more informed or intelligent than anyone else here, so you should at least be willing to calmly discuss the issues and not resort to ad hominem, defensive, value-free attack responses.

    Yours Troll-y,
    Fazers
  28. yadge said:

    It just seems pretty likely to me that AMD (if it doesn't go bankrupt) will likely quadruple it's stock price in the next few years. So it just seems like a pretty good choice to me. It might go down more before it goes back up, but with this economy it's almost impossible to not make money once the market comes back.

    But it's been interesting and helpful reading both sides of the AMD argument. I'm still not really sure what I'll end up doing.


    Personally I would invest in both AMD (once the fab spinoff goes through) and Intel. In a rising tide, all boats float :). And that way, if one company outperforms the other, you're covered.

    AMD's stock price has been fluctuating around the $2 mark for quite a few months now. There's a few large institutional investors who own the majority of the stock, so they're the ones dictating how the daily price swings go, based partly on news and partly on speculation. For instance, some of them may be speculating on AMD getting a large antitrust settlement from Intel 4-5 years down the road :).

    However TC is right in that you should diversify your investment portfolio for the long-term. I think about 100% of the financial advisors would agree with him :).
  29. fazers_on_stun said:
    LOL - I'm so glad I'm appreciated in my own time.

    If pointing out the facts about AMD's economic position and the dangers of investing in them to the OP makes me a fanboy, so be it. All you offered was your unfounded assurance that AMD would never go out of business. Are you willing to back that up with a reimbursement to the OP if he follows your advice and loses all his investment?

    Didn't think so.

    This thread was going along nicely with everyone being civil, until you popped in and crapped on it.

    You are entitled to your own viewpoint but you are clearly not more informed or intelligent than anyone else here, so you should at least be willing to calmly discuss the issues and not resort to ad hominem, defensive, value-free attack responses.

    Yours Troll-y,
    Fazers


    I really crapped on it? Becuase i can look back and read my first post and all i said was basically AMD stock is real low right now they are finally making decent product's and it might not be something to overlook. I ALSO SAID ALL TECH STOCK'S ARE DOWN AND NOW IS A GOOD TIME TO MAKE SOME MONEY..

    Then TC comes along and call's me a fanboy and assume's i said to dump all your lifes savings into AMD

    You've been going around for week's now preaching that AMD is on it's death bed...you and TC are alway's talking about fanboy's....

    I think some here just cant handle the fact that someone doesnt have something bad to say about AMD well thats what it look's like to me but perhaps im wrong ok? Im not angry and having an intelligent and calm conversation doesnt include calling people fanboy's.
  30. xx12amanxx said:
    I really crapped on it? Becuase i can look back and read my first post and all i said was basically AMD stock is real low right now they are finally making decent product's and it might not be something to overlook. I ALSO SAID ALL TECH STOCK'S ARE DOWN AND NOW IS A GOOD TIME TO MAKE SOME MONEY..

    Then TC comes along and call's me a fanboy and assume's i said to dump all your lifes savings into AMD

    You've been going around for week's now preaching that AMD is on it's death bed...you and TC are alway's talking about fanboy's....

    I think some here just cant handle the fact that someone doesnt have something bad to say about AMD well thats what it look's like to me but perhaps im wrong ok? Im not angry and having an intelligent and calm conversation doesnt include calling people fanboy's.


    I said "crapped" because your post was the first one, and only one, to go to full-afterburners flaming. We can all have a friendly discussion with differing viewpoints; it's more convincing when you have linked facts & figures to back up your position of course.

    Personally I do think the Abu Dhabi deal will go through and AMD will survive - however it's not a sure thing yet. So given that during the conference call back on January 15th, one of the AMD execs (maybe Dirk, I don't recall exactly who) said that the deal had to go through since AMD could no longer afford to build or upgrade its fabs alone, then until the spinoff is accomplished, AMD is at risk of going bankrupt. Since stockholders are at the bottom of the foodchain when it comes to paying off debtors in a bankruptcy proceeding, an investor should factor that into his or her risk calculations.

    I know a guy who, back in the CP/M heyday, bought a Kaypro computer for $2K (probably $6K in today's dollars). He was so fanboyishly enamored of it, showing it off to anybody who stopped by his cubicle, he went out and bought $10K of stock in the company. It promptly dropped to $9, but he didn't want to appear wimpy to his friends so he bought another $5K, telling everybody it was sure to double in a year. Unfortunately it went down and down and sure enough Kaypro went belly-up in about 18 months after the IBM PC was introduced.

    The moral of the story: Don't let emotions like fanboyism or greed color your judgment when making financial decisions. Like TC and Jimmy said - a company's balance sheet is your friend :).
  31. fazers_on_stun said:
    Are you sure x86 is covered only by patents? What about copyright? That's good for something like 50 years IIRC. I know software can be both copyrighted and patented (well, it has to be claimed as a method or stored on a computer readable medium to get around the permissible categories of invention statute).

    But if covered only by patents then I agree the original x86 patent would have expired long ago, and only the patented extensions would remain in effect.

    That would be good news for the guy in a recent thread, who wanted to make CPUs using a blowtorch, metal and a hammer! :sol:


    I'm fairly sure that CPU microcode is just covered by patents, however there are several overlapping patents involved. The original x86 only covered 16-bit registers and was released in 1978 (patent was probably filed a year or two earlier). It was later updated to include 32-bit registers in the late 1980's and 64-bit registers in the early 2000's. These later patents are improvements on an earlier design, so in effect these serve to extend the life of the original patent. For example, while x86-64 was developed and patented by AMD, it almost certainly makes use of elements that are still covered by Intel's x86-32 patent that has likely only recently lapsed (the 386 was released in 1989 so the x86-32 patent was almost certainly filed no later than 1988).

    The extensions are kind of a big deal as a lot of modern software would run very inefficiently without them. It will be interesting to see how this plays out if the rumors about Nvidia trying to develop an x86 processors turn out to be true. From a patent standpoint they could probably develop a 32-bit x86 CPU without legal problems, but it would have no MMX, SSE, or 3DNow. That would put them into a similar situation as AMD was in with the original Athlon processors. However, Nvidia would now face a more stacked deck as there is currently quite a bit of mainstream software that is optimized for SSE while there was hardly any when AMD was in the same position.
  32. One more Gloom & Doom AMD bankruptcy warning:

    Quote:
    Advanced Micro Devices

    Market Cap: $1.4 Billion
    Z-Score: 0.21 (as of September 2008)
    How the mighty have fallen! AMD was once a genuine competitor in the global semiconductor business. Its market share (2.9%) and global ranking (no. 8) in the industry peaked in 2006, but was still dwarfed by Intel (INTC Quote - Cramer on INTC - Stock Picks) that has a vise grip over the industry, with market share in the 12-13% range (Market share and ranking data source: iSuppli Corp.). AMD's market cap also peaked in 2006 at around $24 billion. Revenues peaked in 2005 at about $5.85 billion.

    However, strategic mistakes have since plagued the company. AMD over expanded its production facilities, knows as "fabs" in the industry. In 2007, the company made mistakes with the design and production of its quad-core server and desktop chips. Earlier this month, AMD announced that it was going to delay a planned spin-off in the company's attempts to outsource its chip production.

    Now, AMD faces declining market share, an economic dilemma and cash-rich competitors, such as Intel and Texas Instruments (TXN Quote - Cramer on TXN - Stock Picks), which can weather the current storm.

    AMD's debt rating is CCC+, which is categorized as "junk." In 2005 and 2006 combined, the company generated nearly $2.8 billion in cash flow from operations. In 2007 and 2008, the company burned a lot of cash (while I don't have the exact amount, I estimate the total to be just over $1 billion). AMD's debt grew from $1.3 billion at the end of 2005 to $4.7 billion at the end of 2008.

    When you put this all together, AMD is in serious financial distress. If the company cannot sell or spin off assets and the chip business remains weak, AMD will have to put itself up for sale or face the possibility of bankruptcy.

  33. ^
    You'll notice that they say bankruptcy is a possibility if AMD doesn't spin off or sell assets, which just so happens to be exactly what AMD will be doing tomorrow. I also have a hard time believing anything stock analysts say these days given how many of them were so horribly wrong in their assessments of the market over the last few years.
  34. Stock analyst know nothing. They are PAID to make people feel insecure about their investments, or over-estimate to create false growth. Kinna like how movie critics are paid to talk ****.
  35. spathotan said:
    Stock analyst know nothing. They are PAID to make people feel insecure about their investments, or over-estimate to create false growth. Kinna like how movie critics are paid to talk ****.


    Couldn't agree more.
  36. As good as it sounds to say "I'm going to invest in stocks." there is a few things you should know before you do.

    First thing you should do is look at where you are going to place your money. You are going to have to open an account and most of them require a significant chunk of change just to open.
    Usually there is a holding period so just putting your money into the account, getting it opened, and thinking you are going to start immediatly buying and selling stocks is wrong.
    I'll take Etrade as an example. It costs a thousand dollars to open, then there is a 7 day period (working days) where your money just stays there, and you cannot buy any stock under $10.00 for 10 working days after your account is opened.

    Next when you begin trading you will want to make large purchases. If you don't then the fee's will eat you alive and you'll actually loose money instead of making any. You'll want to look at purchases more in the range of $300 to $500 as a minimum. I usually wait till I have $500.00 before I buy. As you become more invested in the stock market you'll find you will begin saving more cash to make them really big purchases so the fee's become even less.

    Don't look at just one stock. You'll want to diversify your money. At first you will concentrate in one area but set a reasonable goal of how much stock you want to own in that company. After you meet that goal then begin buying into another but set goals.

    Always keep money on hand. You don't want to invest all your cash into stocks because what happens when an emergency happens? You'll be forced to sell your stock (maybe at the worst time you could) and take substantial losses. So keep Cash on hand. A good number for someone under fifty is 10% but you choose because the only number that will be good for you is the one that you can live with.

    Look at companies that give out good Dividends. In a slumping economy just buying stock might not be good enough. You can have your cake and eat a bit of it too. A little extra cash every three months can really make you feel like you have invested into a company. The company I have most of my money in pays .22 cents per share. I bought the stock when it was .79 cents and to be honest it is how I live as well as I do. I could sell it and make a substantial amount of income but .88 Cents per year per share is amazing and it would take years to get to that point again. I also took considerable risk and the company was looking pretty bad at the time. Most people jumped out and I happened to be there and jumped in. I didn't know what the hell I was doing but I did it anyway.

    Usually the best things in life are the things that you risk it all on. I took my wife on a date and married her three months later. We have been married for 18 years and have three kids. We were broke, rich, broke, then mediocre, and then really poor, and now were pretty well on our way to being upper middle class.

    The stock market is like that. It will throw some curve balls but understand that some of the best buys are the riskiest ones. The riskiest ones can also make you broke. My father In-Law said I was the luckiest man alive. He never saw the times I was unlucky or the tears that went along with it.

    I hope I have helped.
  37. Quote:

    I'd say AMD have a reasonable chance of turning things around in 2009. Nvidia could go to the wall quite easily ($1.2bn revenues into $480m simply does not go) and that would massively increase AMD's gpu market share overnight.


    LOL. Dream on.

    The problem is, AMD's launching a semi-competitive CPU in an ever-shrinking sector. They need to have a strong mobile platform for me to even consider in investing in them.
  38. Quote:
    http://www.thetechherald.com/article.php/200826/1320/Gartner-PC-population-has-passed-1-billion-systems


    1 billion desktops, 12% growth. ~250 million laptops. Feel free to 'dream on' about the extra 450 million pc's in China by 2015, a large slice of which will be AMD powered.


    I am willing to make a bet with you that it wont be as big as you think it will. I am more than willing to bet that most of those CPUs in China will be the Godson (I think thats what its called) III, also known as Chinas in house CPU since the trade agreement with China states that they are not allowed to have the latest tech and not AMD or Intel.
  39. Wow, I thinkz we needz some time away from keyboard.
  40. Quote:
    http://www.thetechherald.com/article.php/200826/1320/Gartner-PC-population-has-passed-1-billion-systems


    1 billion desktops, 12% growth. ~250 million laptops. Feel free to 'dream on' about the extra 450 million pc's in China by 2015, a large slice of which will be AMD powered.


    LOL. 1 billion desktops has been sold so far, and how much money AMD can extract out of it?

    The desktop PC market is shrinking. That's a fact. MSI executives even predicted that one of the top-tier motherboard manufacturer will drop out beyond three years.

    http://www.tgdaily.com/content/view/40939/122/

    That is why AMD needs a strong mobile platform to compete against Intel's mobile and netbook platforms. However at the moment, they focus way too much on the desktop space, a pie that's growing smaller by the day.


    And I second jimmy's viewpoint. That 450M PC in China will most likely to be powered by China's own quad core CPUs.
  41. The spinoff deal was ok'd just like planned.
  42. Quote:
    Dear god...yomama you know the difference between 'limited expansion' and 'shrinking', right?


    Hmm I remembered seeing an article specifically talking about the shrinking of the desktop market. I'll find that.

    My point is that the desktop market is no longer a thriving sector, therefore AMD is facing a much more difficult task in capturing a sizable market share in a nearly saturated market. It seems to me that AMD is putting most of its eggs into the desktop market.

    On the other hand, I wouldn't invest in Intel either. Unless the MID really takes off, and Intel can offer a decent solution with the Atom, I wouldn't hold much for Intel's future profit anyway.
  43. Atom has a long ways to go before its heavily relied on like that. VIA's chip is faster/better....who also had an increase in market share last year.
  44. Quote:

    Mobo manufacturers reckon the PII will get back most of AMD's lost market share due to DDR3 mobos being a total waste of cash.


    Hmm, I really would like to see a link to those reckonin' mobo manufacturers :).

    Isn't AMD transitioning to AM3, which is also DDR3??

    Last marketshare report I saw, for Q4 of 2008, AMD was down to 17.7% total across all segments, from a high of around 25% in 2006 I believe. They fell by about 3% in 2008 alone: IDC

    Quote:
    4Q08 and 2008 Vendor Highlights

    In 4Q08, Intel earned 81.9% unit market share, a gain of 1.1%, while AMD earned 17.7%, a loss of –0.9%, and VIA Technologies earned 0.4%. In the full year 2008, Intel earned 80.3% unit market share, a gain of 2.9%, AMD earned 19.2%, a loss of –3.1%, and VIA Technologies earned 0.4%.

    In 4Q08 by form factor, Intel earned 89.1% share in the mobile PC processor segment, a gain of 1.7%, AMD finished with 10.2%, a loss of -1.2%, and VIA earned 0.7%. In the PC server/workstation processor segment, Intel finished with 88.1% market share, a gain of 2.5% and AMD earned 11.9%, a loss of –2.5%. In the desktop PC processor segment, Intel earned 73.9%, a gain of 0.4%, and AMD earned 26.0%, a loss of –0.4%.

    In 2008 by form factor, Intel earned 87.1% share in the mobile PC processor segment, a gain of 4.8%, AMD finished with 12.1%, a loss of –5.3%, and VIA earned 0.8%, a gain of 0.5%. In the PC server/workstation processor segment, Intel finished with 86.6% market share, a gain of 0.9% and AMD earned 13.4%, a loss of –0.9%. In the desktop PC processor segment, Intel and AMD earned 73.4% and 26.4% share respectively; share changes were negligible.

    Market Outlook

    The decline of the PC processor market in 4Q08 was due to a precipitous drop in end system demand that quickly moved up the PC supply chain through OEMs and contract manufacturers to the processor vendors. While the fast reaction of the supply chain will help avoid significant inventories, demand remains so weak that IDC expects sequential processor unit shipment to decline in both 1Q09 and 2Q09.



    ---

    Quote:
    I'd say AMD have a reasonable chance of turning things around in 2009. Nvidia could go to the wall quite easily ($1.2bn revenues into $480m simply does not go) and that would massively increase AMD's gpu market share overnight.


    Most analysts put the turn-around, if any, at 2011. For that to happen, the spin-off has to occur, which it looks like it will since the AMD stockholders approved it today. Also, the world economy has to rebound, which may happen this summer or next summer, but I doubt it'll go much longer than another full year. And finally, AMD has to release competitive products in all segments they compete, not just low-end "value" desktops and GPUs.

    Anyway, competition requires heavy R&D investment, so those "friendly Arabs" have to be willing to pump more cash into AMD, in the form of stock I guess since AMD has just about sold off all it's pieces worth anything, except maybe for the ATI part.
  45. Quote:
    http://www.thetechherald.com/article.php/200826/1320/Gartner-PC-population-has-passed-1-billion-systems


    1 billion desktops, 12% growth. ~250 million laptops. Feel free to 'dream on' about the extra 450 million pc's in China by 2015, a large slice of which will be AMD powered.


    Your linked article is dated June 24, 2008. Since then, the world economy went into the crapper about 3 months later (Sept. 08). The IDC report I linked in the post above is dated Feb. 11, 2009:

    Quote:
    demand remains so weak that IDC expects sequential processor unit shipment to decline in both 1Q09 and 2Q09.
  46. yomamafor1 said:
    Hmm I remembered seeing an article specifically talking about the shrinking of the desktop market. I'll find that.

    My point is that the desktop market is no longer a thriving sector, therefore AMD is facing a much more difficult task in capturing a sizable market share in a nearly saturated market. It seems to me that AMD is putting most of its eggs into the desktop market.

    On the other hand, I wouldn't invest in Intel either. Unless the MID really takes off, and Intel can offer a decent solution with the Atom, I wouldn't hold much for Intel's future profit anyway.


    This Overclockers article (http://www.overclockers.com/index.php?option=com_content&view=article&id=4254:amds-priorities&catid=57:processors&Itemid=4263) probably isn't the article you're looking for, but it does agree with what you said about shrinking of the desktop market:

    Quote:
    AMD's unit marketshare in each of these fields. For Q3 2008, they were:

    Notebooks: 11.3%

    Desktops: 25.0%

    Servers: 13.8%

    We can see that AMD's unit marketshare differs considerably by sector, being strongest in desktops and weakest in notebooks. Unfortunately for AMD, the long-term trend in CPU growth is the opposite, with notebook CPU volume growing strongly while desktop CPU volume stagnates/slowly declines. I didn't list notebooks first just to be extra-nasty, Mercury's research also indicated that Q3 2008 was the first quarter ever where notebook CPU shipments exceeded those for desktops.

    Next comes the revenue marketshare in the various segments. It's easy to see that AMD gets considerably less revenue per CPU, no matter what the segment than Intel.

    How much less?

    In servers, we find that in Q3 2008, AMD got 77% of the revenue for the average server chip that Intel did.

    In notebooks, we find that in Q3 2008, AMD got 72% of the revenue for the average notebook chip that Intel did.

    In desktops, we find that in Q3 2008, AMD got 63% of the revenue for the average desktop chip that Intel did.

    So in the segment where AMD does best, they get (relatively) the least amount of money, but, no matter what the segment, AMD processors sell at a significant discount to Intel processors.

    This little table illustrates what AMD's top priorities are for the next few years. They need to sell a lot more notebook chips, and they need to get a lot more for what they make, whatever the sector.
  47. Just_An_Engineer said:
    ^
    You'll notice that they say bankruptcy is a possibility if AMD doesn't spin off or sell assets, which just so happens to be exactly what AMD will be doing tomorrow. I also have a hard time believing anything stock analysts say these days given how many of them were so horribly wrong in their assessments of the market over the last few years.


    I agree. No one here said "AMD WILL GO BANKRUPT". The OP asked if he should invest in AMD. I, and others, noted there is a large potential for gain if AMD stabilizes, but also cautioned of the risk of AMD going bankrupt.

    Even with selling its soul, AMD will still be in danger of bankruptcy.
  48. the "friendly arabs" are having their own melt downs right now. housing is tanking on them just like it is us, they are buying back alot of their own bonds to artificially inflate the values. they arent exempt from suffering like the rest of the world. they made costly mistakes of their own investing in some of the very financial institutions seeking a handout now. a google search can verify it. i read a bunch of it yesterday but didnt want to throw flame bait out there because it most likely will have no bearing on the AMD deal but does serve as a reminder that this wont be the deep pocketed rich uncle to run to for cash every time there is trouble. if anything, they may use it as leverage to gain more control of their investment.
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