I'm buying 10 grand of AMD as soon as the mrkt opens. *2 posts means I'm new to ET, not to the market. thoughts?
hey i would follow buylowsellhi's advice, i'd recommend accumulating your position slowly, and must have some reason to allocate a chunk of your portfolio to this stock.
My only thought is why would you want to buy a stock in a deep downtrend with no signs of even coming close to breaking the downtrend?
I'll do my best, and try and answer your question Grail. The chart has it making a bottom (could go lower of course, but it appears the worst is over and it is now making a bottom). It is a good candidate to be acquired. AMD has a competitive product at a competitive price and is competitive with INTEL on research. It's in AMD's customers best interest to see that AMD gets a fair share of orders. No OEM in their right mind wants CPUs to be sole source. AMD is going through a rough patch somewhat to do with costs associated with acquiring ATI. That acquisition made sense however, and there, in any case, seems to be adequate capital available. I think the risk/reward ratio is very favorable under $6. I like AMD under $6. One has to be prepared to wait this one out.
Bad year to be investing in chipmakers. Outlook on industry is bleak for 2008. Oversupply and numerous compeitors like sndsk lower profit margins and lower guidance for this year. I would stay away from this sector.
Yes, of course, no one wants these stocks right now. That's precisely why i am accumulating them in accounts with long time horizon. But of course, only when the price becomes extremely favorable, e.g., AMD < $6. When you decide it is time to buy i'll be ready to sell to you!
I guess I am just not a bottom fisher until a stock at least beats its last pivot point. True, I would make less money, but I would also not be catching a knife. To each his own. Good luck.
I am bullish on AMD because the affiliate work they're doing with IBM in Fishkill, New York (working side by side) gives me a lot of confidence that they are getting aggressive about R&D, and they also are going to be rolling out their 45nm mobile processors very soon, which will help their margins and market share (as laptops are a faster growing segment of the pc market), and AMD is going to 'franchise' prefab work, which will help them aggressively cut costs, at a time when Intel has laid out some very expensive manufacturing facility money in Ireland and China.
im just bullish on most american stocks, we wont see a surge, but this year would be a good time to be accumulating in sound companies. i just chose amd because it was the cheapeast and a fair sized company. and i wanted some tech exposure in my portfolio, i am carrying mostly foods, and telecom, with some in mining.