Investing

Short Intel + Buy AMD?

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  • Aug 1st, 2017 1:38 am
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Member
Oct 12, 2016
314 posts
81 upvotes
AMD seems to be a very confusing stock. One that just cannot make up its mind :D
Deal Fanatic
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Jul 19, 2003
8137 posts
770 upvotes
Limited7 wrote: AMD seems to be a very confusing stock. One that just cannot make up its mind :D
seems to be stuck in a channel, which could be profitable if you sell the top ($14+) and buy the bottom (low $13)
hi!
Deal Expert
Jan 27, 2006
21844 posts
15620 upvotes
Vancouver, BC
masterhapposai wrote: seems to be stuck in a channel, which could be profitable if you sell the top ($14+) and buy the bottom (low $13)
Basically, people are nervous about the numbers of both AMD and nVidia. They want to see some assurance that the sales are moving the way they are hoping and that's a good thing as there are still people out there who have doubts. If there were no doubters, there wouldn't be anyone left to buy the stock.
Jr. Member
User avatar
Dec 26, 2015
162 posts
80 upvotes
nowhere
You missed the AMD boat... I wouldn't touch it.
Deal Fanatic
Aug 22, 2005
7963 posts
1142 upvotes
JattFauj wrote: You missed the AMD boat... I wouldn't touch it.
I thought that when it was at $8
Deal Expert
Jan 27, 2006
21844 posts
15620 upvotes
Vancouver, BC
JattFauj wrote: You missed the AMD boat... I wouldn't touch it.
I said that about nVidia when it was trading at $50... then $60... and definitely when it was at $80...
Deal Expert
Jan 27, 2006
21844 posts
15620 upvotes
Vancouver, BC
If anyone is thinking of AMD, now might be a good time. GS recently downgraded the stock which caused it to drop into the low $13 range. The last time something like this happened, it was back up to the mid $14s within a short period of time.
Member
Oct 12, 2016
314 posts
81 upvotes
AMD is getting a pretty bad beating right now but lets remember May 2000 when it hit $92.35 mark. It may not hit that mark again for some time but I see AMD being added to S&P 500 as a positive thing.
Deal Fanatic
Dec 6, 2006
5805 posts
1972 upvotes
Toronto
Down almost -14% on after/pre-market after ER. Not really a bad ER per say, but I guess that's what happen with really speculative stock?

EDIT: ok, make that 19% now...
Deal Addict
Nov 28, 2010
1374 posts
345 upvotes
Brampton
what in the world? AMD's new product is really competitive now both in the graphics as well as processors witht the latest lineups so it should be rising, not falling
Deal Fanatic
Dec 6, 2006
5805 posts
1972 upvotes
Toronto
endokuken wrote: what in the world? AMD's new product is really competitive now both in the graphics as well as processors witht the latest lineups so it should be rising, not falling
Main trigger is the lower guidance for profit margin I think. You can have as much revenue as you want, but if the margin isn't there, you aren't making profit.
But the main overall reason is the SP was based a lot of speculation (of very very good numbers), so even if the real ER numbers aren't that bad, SP drops hard.
Deal Fanatic
Nov 24, 2013
6479 posts
3344 upvotes
Kingston, ON
endokuken wrote: what in the world? AMD's new product is really competitive now both in the graphics as well as processors witht the latest lineups so it should be rising, not falling
boyohboy wrote: Main trigger is the lower guidance for profit margin I think. You can have as much revenue as you want, but if the margin isn't there, you aren't making profit.
But the main overall reason is the SP was based a lot of speculation (of very very good numbers), so even if the real ER numbers aren't that bad, SP drops hard.
Yep. The financial results show the Ryzen revenue bump, but the margin & earnings weren't great (Q1 loss cut from $0.08/share to $0.04). Good read here:

http://www.reuters.com/article/us-amd-r ... SKBN17X2CZ

On top of that a bunch of money had bought in over the past year on speculation of huge profit growth, to the point where the stock was "overbought." There's an old adage, "buy the rumor, sell the news." In this case, adapt it to buy on the hype, but take the profit before the actual results can disappoint.

Meanwhile, Intel is profitable and paying a 3% dividend yield.
Deal Expert
Jan 27, 2006
21844 posts
15620 upvotes
Vancouver, BC
The difference in margin was 1% (33% instead of 34%) if I remember correctly. The numbers were also based on lower margins from the GPU market. Analysis are expecting the product mix to be different next quarter as the new server chips would be included.
Deal Addict
Nov 28, 2010
1374 posts
345 upvotes
Brampton
jerryhung wrote: Insane drop, enough said. I thought INTC - 4% drop was bad after ER, not anymore

Can't believe I once had +30% gain in AMD which is all gone now
Did you sell, holding or planning to short or get more?
Deal Addict
Nov 28, 2010
1374 posts
345 upvotes
Brampton
It's rallied quite a bit since the low of under $10. Wish had bought more. Can't believe I almost sold at those lows. Hopefully there's still major upside to such a volatile stock

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