Ticker Shock: Why Advanced Micro Devices Is Behind
By Glenn Curtis Sep 09, 2009 10:40 am
Wednesday's top stories and stocks with potential to move.
Asian stocks took a hit overnight, but nothing too bad. The Hang Seng was off 1.04%, and the Nikkei was down 0.78%. But European stocks were looking up earlier this morning. And here in the US, we're currently trading higher.
Here’s what I’m focused on this morning:
Advanced Micro Devices (AMD):
Yesterday, Barclays Capital cranked up its rating on the company from Equal Weight to Overweight. But in my mind, this dog don’t hunt (said with a southern twang).
1. I don’t understand the almost cult-like mentality that surrounds this stock and seemingly has for years. I wouldn’t be that excited if everyday I went to work I had to fight Mike Tyson. That’s kind of what it's doing as it goes up against Intel (INTC).
2. Is it me or do profits mean anything anymore?
3. AMD bulls, rather than send me hate mail, please pen a letter to management and ask them how they plan to resurrect the company and add value for shareholders.
Talbots (TLB):
Are these guys getting their act together? The Massachusetts-based retailer was out with its second-quarter numbers earlier this morning and there was some good news: The chain lost $0.33 a share excluding items, which was a country mile better than the $0.52 loss analysts had been expecting.
My thoughts:
1. The bottom-line beat is a bright spot. I’m also a little more jazzed given the stock is through the $5 mark. But I’m still not buying.
2. The sales line looked a bit on the light side. And its comps were off a sickening 24.9%. Not to mention that this year’s and next year’s collection is full of red -- which is one way of saying it’s expected to lose a lot of green.
3. Not a direct competitor I realize, but if I were looking to bet on a comeback in retail, I’d rather go with Hot Topic (HOTT). At least it's expected to be in the black.
For more on this sector, see Retailers in for Unhappy Holidays.
No positions in stocks mentioned.
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2009-09-09 11:00:57
AMD
AMD is in the middle of a turnaround, that's why people care. They lead Intel in graphics and power, but not processing or nodes (which is what everyone seems to focus on.)
2009-09-09 11:13:20
This article is unsubstantiated
There is always a #1 and a #2, thats why someone has to be behind. Why do analysts have a cult like following to Intel and constanty bash AMD?? Maybe its because they like manipulating the market and they short AMD.
How anyone could say AMD isnt doing anything to imporve itself hasnt been awake for the last 12 months. Partnered with a most wealthy investment firm to create the worlds most advanced foundry. Dropped a large chunk of its debt and operating expenses. Produces the worlds best value in graphics, even Apple has sided with AMDs graphics, and they wrote the spec on OpenCL. A native 6-core server processor already on the street. More and more laptops are incorporating AMD graphics and chipset and cpus. They are winning market share even if the Intel notebook just has AMD graphics card.
Not only will AMD benefit from the cash infusion of Global Foundries, but they will make money back on their production expenses, and will grow as the foundry gets other customers, as AMD still has a large share of the company.
So wake up!!!!
How anyone could say AMD isnt doing anything to imporve itself hasnt been awake for the last 12 months. Partnered with a most wealthy investment firm to create the worlds most advanced foundry. Dropped a large chunk of its debt and operating expenses. Produces the worlds best value in graphics, even Apple has sided with AMDs graphics, and they wrote the spec on OpenCL. A native 6-core server processor already on the street. More and more laptops are incorporating AMD graphics and chipset and cpus. They are winning market share even if the Intel notebook just has AMD graphics card.
Not only will AMD benefit from the cash infusion of Global Foundries, but they will make money back on their production expenses, and will grow as the foundry gets other customers, as AMD still has a large share of the company.
So wake up!!!!
2009-09-09 11:18:48
Is it me or do profits mean anything anymore?
Profits is tangible , but there is many other intangible profits that benefits the economy. We need to start looking hard at intangible profits as we evaluate values of stock. I am not saying that profits is bad, but it is not the only name of the game in town, you mind?
2009-09-09 11:22:19
Beware about befuddled managements, sometimes though...
There is something that we ought to watch out for that is management can be so incompetent that they ought to be shot or massacred. For AMD, do you think that its managment is that clueless?? Well, I think not.. AMD is an excelllent intangible stock value that America ought to be proud of..
2009-09-09 11:32:49
AMD and Global Foundries Go Ahead with New Fab in NY
In case, you are so clueless about AMD, do you know that AMD just went ahead building another new world class Fab in New York . AMD spin off its two world class Fabs in Germany to Global Foundries which is based in the Middle East. Global Foundries also is in process of buying Chartered Semi in Far East . Now AMD enjoys Intel-like multiples of Fabs to carry out its future chip production through Global Foundries around the world.
2009-09-09 11:37:49
Intel's newest cpu will be even better, lower power, cost less. Intel has superb research even IBM envys. Amd is dead.
Steve - http://scrabblecheat.com
Steve - http://scrabblecheat.com
2009-09-09 11:42:52
AMD and Analysts
AMD is behind for the simple reason that the management is incompetent and has been for years. They seem to feel that the way to success is to publish a multitude of Press releases, many of them proven to be lies. Case in point: Three weeks before the last earnings report Two executives ( Desssau and Bregman), and a group of Analysts, reported that AMD had taken market share from Intel and AMD's margins would be higher. When the earnings came out this was proven to be false.
Yesterday Luke, a Barclay's analyst upgraded AMD. It's notable that Barclay's Global Investors Fund owns 20.73 Million shares of AMD stock !
Yesterday Luke, a Barclay's analyst upgraded AMD. It's notable that Barclay's Global Investors Fund owns 20.73 Million shares of AMD stock !
2009-09-09 11:48:45
Cult like mentality??
It is now up to customers, including YOU! Are you going to buy your next computer with AMD (inside)? or what? Unless you are a dye-in-the-ink nerd, there is is very little distinction between Intel and AMD in chip technology. Intel may have the edge in the bleeding nose performance class that most of us dont use at all ourselves at home except for nerds . If you like to fiddle with your motherboard and whatnots all night, fine, go buy Intel chips. Intel users already benefits from AMD competition in form of lower Intel prices. Now is not the time to chase or leave AMD for dead based on P/E ratios, save it for later... So far, nobody is talking about what could happen if AMD goes under and quit making chips, but you would obviously be delighted with that. Then what, tomorrow? I dont understanding your rationality toward AMD, neither.. You sound like the Rain Man pursuing profits only... nothing else... narrow minded...
2009-09-09 11:57:03
If management is switched between AMD and Intel..
Suppose we switch management between AMD and Intel, AMD would quit a long time ago.. The AMD management had been always a fighter all the way since the victory over intel to make 32 bit chips 25 years ago. The court victory cost AMD a lot of revenues and allowed Intel to get ahead with morre fabs and lower costs per chip. It had been a chase for AMD ever since. Now Intel is accused of anti competitive practices against AMD , and many nations around the world is agreeing with AMD and began instructing customers to stop favoring Intel over AMD in their procurements. Intel is better at deflecting AMD at every turn than focusing on future chip technology. Accusations are flying all over , but I care more about AMD technology in the future than earnings or whatnots.. Again, AMD is a great intangible stock value that we should support .. I am no bleeding heart liberal thirsting for water at Wall Street. I know AMD and it is here to stay.. Everyone knows that..
2009-09-09 12:47:01
Better Intel Chips Doesnt Mean Intel is 20 times as big as AMD ...
Most of us would not benefit anything from slightly better Intel chips unless AMD still could not manage to keep up with Intel's lead or back and forth. There is very little to compare between Intel and AMD that matters only to dye-in-the-ink nerds who keep whizzing meters connected to their computers to keep them informed of the CPU speed, etc.. I see nothing glaringly different between AMD and Intel. They are both good chips and AMD is always cheaper than Intel and I save money... Thanks to AMD!
2009-09-09 12:49:41
Investors want to see AMD gone ...
Investors want to see AMD dead so that they can buy Intel stock for a tiny gain. They would not touch AMD stock because it is "risky" . Investors are still longing for Intel to finally become the monopoly of chip making. Who are they kidding themselves??
2009-09-09 15:13:13
Better than what?
What will be better about it and what are you comparing it to? And AMD processor? Imagine if there was no comparison. The fact that Intel needs to come out with a new processor to be lower power than AMD is something isnt it?
Intel performance is not better in every aspect. You think IBM envies Intel??? Ha, IBM works with foundries all over the world and integrates them and sell IP and its processes, and they are envious? AMD partners with IBM's friends to develop the most advanced libraries for fabricating the most advanced circuits.
Intel performance is not better in every aspect. You think IBM envies Intel??? Ha, IBM works with foundries all over the world and integrates them and sell IP and its processes, and they are envious? AMD partners with IBM's friends to develop the most advanced libraries for fabricating the most advanced circuits.
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