Discussion in 'Stocks' started by pokerg1, Jan 11, 2008.
do you guys think it will go up or down in the next week? month? year?
I think it will do both.
It's bottomed pretty much. They missed revenues by 1% but took a big loss because of the ATI acquisition (about 1.3 billion).
And yet the stock is trading a little up AH.
I've said it before; no one is going to let the only competition to Intel go down and give Intel a true monopoly.
Plus, corrected Barcelona and Puma are on the way.
And this is why AMD has bottomed:
"The company took a noncash charge of $1.61 billion, or $2.89 a share. With the charge, the company, the second largest maker of computer microprocessors, posted a net loss of $1.77 billion, roughly equal to its revenue for the quarter. The loss amounted to $3.06 a share.
Without the charge, however, A.M.D. would have beat analystsâ forecasts for the quarter, posting a loss of $97 million, or 17 cents a share. Analysts had forecast A.M.D. to lose 36 cents a share, according to Thomson Financial.
...Shares of A.M.D. fell 23 cents, or 3.5 percent, to close at $6.34 in the regular session. In extended trading after the earnings report, the shares were up 4 percent."
Chip Maker Is Nearing Profitability Despite Loss
By LAURIE J. FLYNN
Published: January 18, 2008
SAN FRANCISCO â Advanced Micro Devices inched closer to profitability despite posting a huge loss as it struggled to absorb the huge cost of its acquisition of ATI Technologies, a graphics chip maker.
The financial report on Thursday covered a difficult quarter for A.M.D., one in which it tried to control costs, get a balky processor back on track and convince wary investors that its troubles were behind it â all amid fears of a slowdown in demand. But the company also reported a lot of good news, including a repaired software flaw and improved profit margins.
The Sunnyvale, Calif., company, the second largest maker of computer microprocessors behind Intel, posted a net loss of $1.77 billion, roughly equal to its revenue for the quarter. The loss amounted to $3.06 a share. It includes a noncash charge of $1.61 billion, or $2.89 a share, for the fourth quarter.
Without the charge, however, A.M.D. soundly beat Wall Streetâs expectations for the quarter, posting a loss of $97 million and 17 cents a share, compared with a loss of $576 million, or $1.08 a share in the same period a year ago.
Analysts had forecast A.M.D. to lose 36 cents a share, according to a survey by Thomson Financial. Many analysts had been skeptical that A.M.D. would show much progress at all during the quarter given its challenges.
âWe are very pleased with our financials,â Hector de J. Ruiz, A.M.D.âs chief executive, said in a conference call with analysts. âWe came darn close operationally to breaking even during the quarter.â A.M.D. executives said they now expected the company to break even early in the second half of the year. On an operating basis, A.M.D. posted a loss of only $9 million.
Robert J. Rivet, A.M.D.âs chief financial officer, told analysts he expected revenue in the first quarter, typically A.M.D.âs weakest, âto decrease in line with seasonality."
Investors cheered the results, which were announced after the end of regular trading. Shares of A.M.D. rose 35 cents, or 6.52 percent, to $6.69 in after-hours trading, after declining 23 cents, or 3.5 percent, to $6.34 in the regular session.
The marketâs reaction to A.M.Dâs report was in stark contrast to the sell-off that had accompanied Intelâs report on Tuesday. It reported record fourth-quarter revenue but issued a disappointing outlook for the first quarter, fueling Wall Streetâs fears of a slowdown in spending on computers.
Cody Acree, an analyst at Stifel Nicolaus, said A.M.D.âs report eased some investorsâ fears of a slowdown. âI think the industry was more concerned about overall demand here than A.M.D.,â he said. âThings werenât as bad as they could have been.â
A.M.D. had other good news to report. Mr. Ruiz said on Thursday that the company now expected to start shipping its new Barcelona quad-core chip for servers in two to three weeks and would increase shipments through the end of the quarter of the processor that A.M.D. executives called one of the most significant new products in several years. A technical irregularity was delaying widespread availability of Barcelona, which prevented some server manufacturers from selling products using the new chip.
The company also said its gross margin was 44 percent during the fourth quarter, compared with 41 percent in the third quarter of 2007 and 36 percent in the fourth quarter of 2006, indicating the company was making progress cutting costs.
A.M.D. executives also said average selling prices rose during the quarter, and that it sold more higher margin processors, including 400,000 quad-core chips.
For the full year 2007, A.M.D. reported $6 billion in revenue, an increase of 6 percent over last year, but said it lost $3.38 billion, including $2 billion in noncash charges.
This stock is highly oversold, but it has a great potential to recover:
"Market Report -- Story Stocks (AMD)
(Fri, 18 Jan 2008 13:56:39 GMT)
Shares of Advanced Micro Devices ( AMD , 6.88 ) are trading higher in pre - market activity today.The semiconductor and processor company received a positive reaction from investors after announcing ..."
I am sure this stock will go back up eventually...when it will do this is a mystery to me.
The selling was extremely strong today - haven't seen a stock pushed like that in some time...
there were a lot of shares getting dumped...
I suppose those who bought very recently under 6 were locking in profits thinking the market was headed for a fall. AMD will be a good buy again below 6.
I bought a HP computer 18 months ago with an AMD processor and to my horror AMD DOESN'T support Linux very well, I wanted to have a dual boot system with Fedora 7. A current issue of a linux magazine says that AMD is offering better Linux suport in the future but my next computer will have an INTC processor.
Separate names with a comma.