AMD Stock Plummets 25% in Response to K10 Release - Investors Scared - Page 2

I didn't realise that AMD had been selling sub-prime mortgages as a sideline; no wonder they're in trouble!

Hint: Citigroup wasn't hit by 'the market', but by the news that it's going to have to write off billions of dollars that it lent to people who couldn't afford to pay it back, so they could buy overpriced houses; news so bad that their CEO had to resign.

Here, for example:

http://www.bloomberg.com/apps/news [...] refer=home

You are all wrong.

Its a two way street. The stock market is a reflection of the overall economy. The overall economy affects business's profitability, business's profitability is reflected in the company's stocks, which affects the overall stock market.

I know thats a lengthy way to say it, but its a transitive relationship.

All that said, AMD apears to be oversold under heavy volume. I tend to agree that this is because some weak investors got scared and bailed. The stock will drop well below their worth, then most likely after the holidays, the stock will level off and establish a new bottom.

But im probably wrong.

I agree. This is definently a market for the day traders. The long term folks should probably just not watch for a while.

Well, yeah, of course. Citigroup is in fact one of those that caused the current market troubles, not just a victim. I've read quite a bit about them recently. Then I bought a bunch of their shares. I'm sure it will turn out to be a smart investment in 30 years or whenever I retire. I'd do the same with AMD, but I'm afraid because with them I'm not so sure they'll be able to survive and come back.

I don't think you can say it's fair to say that the stock market is the reflection of the overall economy; there are plenty of companies that are countercyclical and do well when the overall economy struggles. There are those whose market cap goes up as the overall market (which is an indefinite term; what is market? most people mean the index, but what index? dow / nasdaq? wilshire? those are just cross sections of the market based on certain parameters) declines, such as REITs, for example, during the last down market period.

And I don't think it's fair to say that the stock market is there to represent worth of companies; it's not the purpose, it's a consequence, and a very questionable one at that; clearly lots of people got it wrong in the late 1990s / early 2000s.

To those that don't understand how capital markets affect the stock market (it's actually in more ways than one but...) in this case it's the fact that every company carries debt (there are precious few that don't, some very rare conditions need to be met), and so the cost of debt / availability of debt for refinancing will most certainly affect the company's future profitability, which is what heavily influences valuations and market pricing.

Oh, and Sailor: "A Random Walk Down Wall Street" Just kidding. Of course you can beat the market.

I'm guessing a rep from Intel will say, "Can we buy you for $6,000,000,000?" Wonder what the answer would be...

FYI: AMD stock is trading for below $10 today. Although some of the recent drop can be attributed to a market wide slump. But do remember, it was above $40 back in the glory days.

As soon as AMD stock drops to a point that I can invest a few hundred in then I will. I am looking at this as probably a great time to buy stock in them, yes they are in a decline right now but this means it is cheap to buy it. Hell, if I buy stock at 9 bucks and it goes up to 12, lets say I have 25 shares in them, I can make an easy 75 bucks (or what heppens if they manage to go back up to $20 a share?)..... I just think this will be a good time to start looking into buying AMD stock.

No, Macs are still macs. That is their number 1 problem. If I could I would have bought all the stock and then closed the company. I really don't like macs..... troubleshooting a mac killed my inner child.....


Other then that, they are fine.... i guess.... if i have to....

I agree, blame the week dollar. People are buying gold, not american stock (or dollars). Raise interest to keep things from crashing further. Anyway, I think lowering the rates further will just artificially inflate the economy. No bashing please, I'm a computer expert, not an econ expert.

I don't know how that would work well. Back when I traded I used Scottrade, which has really low commissions of $7. So in order to make money the stock would have to go up enough to cover the $14 in commissions (7 to buy, 7 to sell) assuming your commissions are that low.

So if you were to take $300 and buy the stock the first 4.6% gain would recoup your commissions.

I don't have a lot of money that's why I don't invest anymore. I would always invest a minimum of $1,000-$2,000.

At $2,000 and a $14 commission only the first 0.7% gain would cover the commissions and the rest would be gravy.

Yeah, same here. I'm just guessing they're trying to ease the mortgage crisis first, and worry about the weak dollar later. Lowering interest rates will allow some people to keep paying their (variable interest) rates, which means they get to keep their homes and the banks get fewer losses too. Close to an election year, politicians are usually VERY reluctant to raise rates too.

Yes, this is going to make the US dollar weaker, but it's good for US exporters. For example Amazon USA sold me $1000 worth of DVDs this fall, what with the Canadian dollar at 1.02 or 1.10 US.... I wouldn't have bought that much at 0.70 US.

yeah well, AMD's stock should be at $8.

imo the 3850 is a real winner (price/performance). It should wipe the floor with everything else. (I dont care what anyone says, $270~$300 is NOT midrange, so discussions of the 8800GT are moot.)

But the 3850 is pretty much AMD's only accomplishment this year... and thats just not enough to save the stock

Any idea how much profit AMD makes from making and selling a 3850 card? If it's actually a loss, then AMD is still in trouble, even if every man, woman, child, and cat on the planet buys a 3850.

I think you can rest assured their making a fair chunk of cash of each unit sold. If the low msrp makes you suspect otherwise, just remember nVidia just had a billion dollar quarter, probably 95% percent drawn from the enthusiast market paying over the odds. The true manufacturing cost of GPUs is probably just a fraction of what we mere consumers actually pay.

You're not accuratly representing the situation.

Nvidia was in the $35-37 range and shot up to $40 for a couple days and is now at $33. Their stock hasn't steadly slumped like AMD's, in fact, it's nearly doubled it's value since April of 2007.

Nice try AMD lover.

To Sailer - Remember WCOM and Nt, I tryed that (buy more). WCOM - become wothless, NT Never realy recovered.

My stock holdings, For what it's worth - Csco (Bought at $2 a share), NOK, Intel, Micron, Ge, and QQQQ

Nov returns: -$4600 or -8%
HOWEVER:, YTD return $7,142 or 15.9% Only negative is Micron down 39%

Would I buy AMD at $7 - No, unless I saw a big improvement from where they are today.

Wish I could find an old website, It reported a real value per share.
This was derived from true value (All assets - minus all liabilities / # shares)

AMD could easily follow in WCOM footsteps - Declare Chapter (whatever) thereby canceling all debt and re-emerging debt free
Gee the only ones hurt would be the shareholders - but then they could use the certificates to better insulate their home.

And, they would still satisfy the "Need to keep intel compatative"

editted some spelling errors

I'm picking on poor AMD! Instead I should be saying:

Great job, your brand new architecture is almost as slow as your old architecture!

Great job, you recalled processors on the day they were supposed to launch.

Great job, you've lost 2 billion dollars in a year.


You can call me anti-AMD, but the fact is this message is being made on my home system which has an Opteron in it. I'm a realism fanboy. I'm pissed AMD is basically a de-railed train right now.

I was looking at my stocks and 24/7 Wall St. Had an artical refeneced to intc Titled " CEO's who need to return to Business school"

Quote
"First on the list is Hector Ruiz of AMD (AMD). He already has a PhD, but it may be the money order kind that you can get through the mail. Ruiz has effectively taken AMD from a high-margin chip company which had the technology to compete with larger rival Intel (INTC) to a sad shadow with big debt and small margins."

TC. Drop may have predicated on downgrade more than dropping Quad.

Stock took a sharp plunge around 10AM EST, which is approx time of downgrade, Dropping the quad probably contributed to the further decline

Extracted Quote from Marketwatch.com
"Analyst Doug Freedman of American Technology Research lowered his rating for AMD (AMD:Advanced Micro Devices, Inc from buy to nuetral"

.

First off, none of you REALLY know what is going on. Ninety-five percent of this thread is pure speculation and is not based on fact.

Neither Intel nor AMD are going bankrupt any time soon. The government will not allow it.

As far as the difference in CPUs, Intel places their memory controller on the motherboard which means their chips consume more watts then AMDs solution. AMD places their memory controller on-chip which means it will save you money with regards to your electric bill. This is fact.

The x86 platform is 20 years old. In computer years, that's older then my dead grandmother. It's time the x86 died and was buried. Intel isn't going to do it. Intel will continue to regurgitate OLD x86 ideas in "new" products. BOR-ING!

Intel fanboys just love to spread negativity concerning AMD, the likes of which can readily be seen in this thread.

Article:

PC chips by AMD surpass Intel's
Smaller Sunnyvale firm outsells market leader in October

"Computers equipped with Advanced Micro Devices chips outsold those with Intel varieties in U.S. retail stores for the month of October, according to market data released Tuesday, marking a rare coup for the smaller company in its battle with the market leader.

San Diego's Current Analysis, a market research firm, found that 49.8 percent of desktop and notebook PCs sold in retail stores in the United States contained AMD microprocessors while 48.5 percent had Intel chips. "

URL:
http://www.sfgate.com/cgi-bin/arti [...] FL02A1.DTL

AMD has been gobbling up market share from Intel big time. And Intel knows it.
AMD is the first on the market with a quad core processor. All Intel has on the market now is a PACKAGE comprised of two regurgitated Core-2-Duo’s. Yes, there’s a reason why they’re called Core-2-Quads.

As for the Penryn’s 45nm process? It’s more expensive to manufacture and customers will pay more for it then if they purchased a Barcelona on 65nm process.

Bottom line is, Intel wastes your money and AMD saves you money. AMD chips have MORE VALUE then Intel’s. That’s what the market reflects! Who sells the most chips lead the market. That’s a fact.

Fortunately, AMD has a plan to recover...

They are soon releasing a new Phenom Logo.. an advance copy of which I have obtained....

I just KNOW this will help

enigma067 is using many AMD fanboy tactics:

AMD Fanboy Tactic#1: Lie
AMD Fanboy Tactic#2: Repeat lies
AMD Fanboy Tactic#3: Repeat lies over and over until they become true
AMD Fanboy Tactic#4: Quote articles that are OVER TWO YEARS OLD
AMD Fanboy Tactic#5: Claim that the mere presence of any OMC makes that system more efficient REGARDLESS of how much the processor uses
AMD Fanboy Tactic#6: Totally ignore that AMD might be in ANY financial trouble despite it being 2 billion in the red in just 2007.

Of course I'm sure he can teach us a lot about stocks. Stock prices are randomly picked out of a hat, right? They have nothing to do with the profitability or debt that a company has, right? Stock prices are just silly billy numbers that people at Wall and Broadway pick out of a large old-school top hat, the kind that Abraham Lincoln would have worn.

7 1/8

Well Chief, I'm from Nevada and we're known for gambling, So I bought some AMD at 9.73. I know its high risk, but that's why I call it gambling money and its not so much that I would scream if it drops. Then again, if it goes up even a dollar I make some money. Actually, I'd like to see it so up to 15 or so, maybe with a sudden announcement that the Phenom problem was fixed. For that matter, I don't care if they make money on CPUs or graphics cards, as long as they make some money.