AMD Stock Plummets 25% in Response to K10 Release - Investors Scared - Page 4

If AMD gets back on track it would be a great buy right now. More than likely it will; but there's a lot of risk right now.

Cramer has made some good calls, but he's had his share of bad ones as well. I watched him this morning admitting to a particualrly bad call in which he said he personally lost about $100,000. No telling how many millions were lost by those who took his advice. Though I have a degree of respect for him, I also know think a lot of average people who did some study could do just as well as if they never heard of him or took his advice.

AMD is a high risk stock at the moment, but its also one that I think is worthwhile for someone who has some money to gamble. At least its a far better gamble than those who drop their money in slot machines here in Nevada. I looked over his picks and pans on the link you provided and see that he panned Washington Mutual as well, yet WM, selling at about $19, has a P/E rating of 9, which is very good, a dividend yield of about 12%, which is excellent, and has a good chance of going back towards $40 where is was a few months ago. Even if it stays at $19, the 12% yield is a very good interest rate.

Picking and buying stocks is not for the faint hearted. It takes individual research, weighing the odds, and then putting down some money. It also means being willing to stay with a stock for a term and not panic selling at every hickup that occurs. Myself, I bought some AMD stock last Friday. Its very low at the moment and has a good chance of increasing far enough to make me some money. I also bought some Washington Mutual. U.S Treasury Secratary Paulson is meeting with Congress in plans to bail out the home loan industry and that should boost WM substantially.

Your missing the point that Sailer and I are talking about.
We don't care who's company stock "holds value" as that does not earn us money...I buy and sale 1K of shares at a time and both of us don't really want the stock to hold steady or only go up $2 a -year.
Waiting for a dividend check on Intel is lost income vrs other investments that pay higher intrest as well.
I bring that up as AMD does not pay dividends at all.

I no longer build homes and stock buy/sales are how I could afford to go fishing for the past 5 months while paying my bills rather than dig into saveings.

@ Sailer...
I was staying in Alturas for my "base" on this last fishing trip...must have drove past your place on the way and back (or near it).

What you two propose is very risky. Money Management among a host of other things would need to be taken into account.

With AMD sub $10 a share what do you do now? buy more? If the one stock does tank how low must it go before you pull the plug or lose it all? Stock trading fees could also eat a good amount of profits as well. It's much riskier than you both let on.

I dont deny that I enjoy "stiring the pot" a little, bringing all the interesting smells to the top, but then again, tell me the phenom isnt marketable in any way, shape or form, and that it will not be taken up by an oem an a section of the enthusiast community. Lets bring this up again when the q4 results are in.

The aforementioned links,

Rising sales:

http://arstechnica.com/news.ars/po [...] d.html?rel

Cash on hand with projection of new figure including recent share sales:

http://www.extremetech.com/article [...] 461,00.asp

...and yes im aware of the contents of these articles! but concerning the figures or wooly claims I have made they are sufficient. There are some more if thats not enough for your perusal, but I will have to hunt for them so there will be a delay in getting back.

When you recall a bunch of Phenom chips that equates to loss in revenue

Heh, view point? You chose to ignore that test. So it was my view point that you seem to disagree with. So your right, it is allowed, and why I posted.

Heh... you mean the tests that didn't make phenom look bad? As in higher resolutions, when the GPU is doing all the work? Oh... my bad..

Hell... like I said before, my E4400 is cheaper, but then even an E2160 OC to 3.2ghz can out do phenom with a decent graphics card. I guess it would be more simple if the CPU didn't execute any code in games... is that what your saying?

Edit:

Whoops... I should backup what I'm saying.. huh?

New Budget Dual-Core CPUs: Intel Pentium E2160 and Pentium E2140 (page 14)

. o O (so I was off by.. 200mhz)

Actually it is terrible. Even when its own cousin, AM64 X2 6400+, out paces it. And all the hype (that was prolly said to help sell it) that was brought to everyones attention.

is spoonboy trying to spoonfeed us his non-constructive argument in hopes of stirring up emotion? i see no point of continuing this thread as it is quite obvious at this point that many tech savvy users in this thread are arguing with a ten-year old passing off as a mature dunce.

Errr... did you actually think I'd create another account?

So, your 9, eh? Whelp... it would prolly take too much time to explain what is and isn't constructive of what you've said.... but what can ya say to a 9 year old, who simply thinks he knows everything, and is on top of the werld.

Have a nice day!

Could we have a moderator lock this thread, please? It's clearly past the point where anything useful will come of it.

Thanks

For myself, I understand the risk. AMD is quite volitatile, with the ability to drop down suddenly as well as go up. Such investments are not for the feint of heart. Its why I call the AMD investment gambling money.

To ease your wondering, AMD is only one of a dozen stocks that I own, Most would be called good solid companies that aren't going to disappear. Or if they do, the economy will be so wrecked that the depression of the 1930's will seem easy. I only have a couple investments that are in the gambling zone. I do my trading on-line so the fees are $7 to buy and $7 to sell. Therefore, if I buy 1000 shares of a company and it goes up 50 cents, I still make a fair amount of money with the sale, though I like to get a larger return.

AMD Stock Update:

At 1:30pm today the stock is down nearly 4% at 9.30


I'm going to make a bold prediction: AMD Stock will be below $8 per share by the end of this month.

I make this prediction because I think investors are going to have a fit when analysts start spouting their concerns about the Errata issue which is now said to affect all K10's at any frequency. The fix for said issue SLOWS the K10 processor down by 10-20%, according to TechReport (10% being AMD's number).

I know I'm spouting out doom and gloom, but that's the reality for AMD, doom and gloom. Launching a new processor slower than your competitor's weakest processor, and having to recall and patch your brand new state-of-the-art technology, NOT GOOD.

I remember someone last winter predicting that AMD would drop to 7 in the late spring to early summer. Ok, maybe he was just late. But as the stock keeps dropping, that will be more inviting for a take-over bid from IBM or someone else. Such a thing could ralley the stocks pretty good.

For now, maybe I need a drink. What's that? Its not 12 o'clock yet? Just move the hands while nobody's looking.

To call this gambling is an understatement and now brings back into question the whole argument of choosing a higher priced stock [INTC] that is destined to fall less vs another stock [AMD] in the same category that is likely to fall more. As well as the old proposed failed approach of buying and holding.

So I guess you could call this the catch 22. The fact is had you bought INTC instead you would be in less dire circumstance right now even though you would use more funds for such a purpose. There is no reason to believe even that it will stop at $8. So the "time factor" that you were trying to avoid has sucked you into a bad situation.

Not to say you won't eventually get out of this, it reduces the argument for making a "quick" score to rubble. While this may have worked for you the past year... it was probably just a small case of luck. This was my whole point in not buying a stock that is falling, just because it appears cheap... there's nothing to support that it will all of a sudden become worth something over night.

As far as a buy out from IBM... I wouldn't plan on it. IBM sold off their PC business including harddrive business to focus on more profitable sectors. I wouldn't plan on them back stepping now. IBM could never keep up with Intel processors what makes you think they could do this with AMD? Just because they license tech to AMD doesn't mean they are looking to merge.

A couple more likely candidates might be Nvidia or possibly Samsung or even a more extreme pick would be Sony. But I doubt this would happen in the current climate. Why buy a company now that is having a host of problems when you can get it for fire sale prices a little later?? The time to buy IMHO is when it's hit rock bottom and starts coming back up. Then you can decide how long you want to hold it for.

I read some breaking further bad news about AMD a few hours ago and made the decision to sell. I got out before it went down to $9.25. That was a Kenny Rogers song, "The Gambler", and I decided it was time to fold. I looked over my gains for the year and I still came out ahead on AMD, so I won't cry to much.

The news that came out is that the Phenoms that were released are defective, the Barcelonas that have been sold are defective, AMD has stopped shipments and is recalling unsold chips. The errata is appearing on all chips, no matter what speed they run. To make it worse, it appears that AMD knew that the Barcelona and Phenom chips were defective at time of sale, but proceeded with the sales anyway in hope to finding a cure. So far AMD has found an update that helps with the errata, but it slows the chip 10-20%. This does not look good, and I expect AMD stock prices to drop a lot more.

@pip_seeker, IBM was only one particular thought that came to mind while I was typing, since IBM and AMD have had some business ties. If all of what came out at TechReport and is appearing elsewhere is true, I can't begin to guess where the stock price will bottom.

Why Dragonsprayer, is that really you? Cause you're sure sounding generous to AMD at the moment.

I do hope your right about the ATI cards helping AMD sufficently to turn things around. Even though I'm a bit ticked off at AMD at the moment, I don't want them to disappear completely. Besides, if AMD did die, half the bickering on this forum would disappear and a lot of people wouldn't know what to say after that.

8.91 at the moment...and still dropping

I wonder how low it'll go.

I suggest you all have a look at the front page, AMD are being propped up by national governments. This is bad as well as some what embarrassing if you’re the managing director of AMD.

And the auctioneer calls out, "Do I hear 9, do I hear 9? Do I hear 8, 8 anybody? Ah, how about 7, is there a bid of 7? Is anyone bidding?

So at a market capital below 5 billion. Isn't that less then AMD paid for ATI? Might that mean that its the ATI division alone which is giving AMD its value? That could be taken to mean AMD has no value. This is sad.

All I can say is I hope it is still in the $8 range in January as I have some CD's due then and would love to pick up more shares.

They own alot more products than just CPU/GPU (good amount of cellphone items for one) and have just started to ship their new early GFX cards.

They are also revamping the K8 line @ 65nm while droping the top two lvl CPU's in that line and bosting the others 100Mhz at the same time.

I for one wish they would use the above and crank out some more skt 939's as they could sale alot for those who built out on that system 2-3 years ago and just want a fast cheap upgrade that will keep up or even pass the new systems in many respects.

They seem to be on time with their projected NM build out and part of that is 45nm by early 2009. They are working with IBM and the game plan from last year is 22nm by the end of 2010.

The more shares I pick up cheep just means that after saleing off most for fast profit I still have share left over that are "free" and by this time next year even those shares which I bought that need to pass $14 will provide a very nice return.

ah the joy of being vindicated, phenom oem machines ftw

http://www.techspot.com/news/28827 [...] ktops.html

Exactly mate, most here got caught up in believing their own doom and gloom. I said they were turning it around and they certainly are according to the q4 numbers (when i saw them my first thought was this thread). That was the trend in their numbers as of q3, not some wild guess.