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A Rough Week: AMD Gets Six F Grades From Investors

AMD just received a devastating certificate from the investment industry. AMD has been crowned "sell of the week" by AAII Journal as investors do not seem to have not much confidence in the company right now. Navellier Ratings has given AMD another downgrade from "sell" last week to "strong sell" this week as the company's financial performance was graded with six "F" performances in eight disciplines.

F grades were given in operating margin growth, earnings growth, earnings momentum, earnings surprises, analyst earnings revisions and cash flow. A "D" was given in sales growth and an "A" was given in return on equity. The good news may be that it cannot get much worse, and that financial analysts sometimes have bad days as well and tend to be extremely moody. Some good news that is thrown in with the bad could upgrade AMD to a sell next week again.

Of course, this financial analyst reaction was to be expected after the rather sobering Q2 earnings result and the fact that the company has made mistakes in mismatching channel and OEM supply of its processors, ending up with too much supply in the channel.

There is surely some time left for AMD to improve, but it more and more seems as if the introduction of Windows 8 will be a make or break time for Rory Read's strategy to lead AMD away from the processor chase with Intel and into a much more consumer-oriented space.

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  • vilenjan
    This is terrible, if AMD goes, than it back Intel/Nvidia monopoly :(
    Reply
  • Raid3r
    Don't get caught up in the reindeer games.
    Reply
  • lol... a sell now... they just need to look at Tom's preview of trinity on desktop..... piledriver will be even faster 0.0!
    XD

    retake speed crown... not sure, be able to beat all i5 CPU's from intel... probably
    Reply
  • wiinippongamer
    If piledriver fails, they should quit the CPU bussiness and stick to GPU's, where they've actually done a good job so far.
    Reply
  • mamailo
    The situation of AMD is getting worse with Rory Read as CEO than when was CEO-less.
    Bad desicions followed by a worst.

    Gimme a LIKE if you wanna see Rory removed.
    Reply
  • it needs to drop to $1 then i can go buy some shares and wait for it to go up again. I dont see them going under anytime soon.
    Reply
  • K2N hater
    Investor news are meant to mislead the masses so the elite may get higher margins.

    AMD isn't in a good shape right now but we know that's got to be a window of opportunity to the gamblers out there.
    Reply
  • whimseh
    None of my parts are from AMD thankfully.
    Reply
  • debs3759
    "investors do not seem to have not much confidence"

    I always liked AMD in the past. I hope they can recover from their recent problems and start innovating again with new technologies that others will want to follow.
    Reply
  • nforce4max
    I hope that the company does not fail, I would gladly support if they decided to team up with VIA to get some of their IP and try to make something better than the two have to offer alone.

    AMD is being mismanaged intentionally so that maybe it could be bought up or go under leaving Intel with almost total market share while it is anyone's guess what will happen to the graphics division. I hope that Intel or Nvidia doesn't get to buy it like what happened to 3DFX.

    Going and doing everything half ass in the IT world doesn't work very well if at all for long.
    Reply