I don't see the risk / reward as very compelling from the short side here. How much pessimism is already built in at these levels? What would it take to send this stock far lower - to $15? $12? This ain't going to trade at a 12x PE.
What if margins solidify and improve? What if EPS is $1.40 next year? $1.50? These are not outrageous possibilities -- and could send the stock to $35 in a sneeze.
The market is in perfect condition to sell off after the new year. There is no doubt there will be a pull back...heavy support at 15.00. You may want to ask yourself what color glasses do you have on today?
If it went to $12 or $15, it would have the same potential as SPSN. Do you really think that's the case? $19 is plauseable, but it won't stay there for long if it goes that low. In terms of risk/reward, this stock is on a par with INTC. Margin issues are the same. INTC has a big inventory issue and AMD has a big debt issue. AMD's debt issue is easier to work, when considering their product mix. INTC might be stuck with their inventory for some time to come. GS likes to ignor INTC's inventory issue.
yes its worth more than 15.00 but the right conditions for a downside squeeze could happen. Considering the market has gone up there is a limit to how high it will go no matter how many analyst paint how rosey the economy is.
<INTC has a big inventory issue and AMD has a big debt issue>
intc may just dump the inventory to the market ... an opportunity to give a very good deal to their best/loyal customers and at the same time give amd a lesson for not to start another war in the future ... double punches for amd ...
now is not the best time to invest in semi or tech ... and in the stock market overall ... dlb is getting shaky too ... thinking to double my short position when it breaks 30 ...
anything is possible, anyone who trades knows that nothing in the market is a sure thing, it could go up, it could go bankrupt. In this range i'm more inclined to think it will rise from here, because they are'nt going bankrupt and they keep increasing market share. already more than 50% down from high, how much more could it really go down?