question: if the stock goes to 2, will any shorter turn long?
The 52 week low is 1.8. Will the stock run down to that level before earning and then pop after?
I think people generally expect a bad earning report with loses. However, AMD may have less loses than projected and then give traders optimism for a rebound. It had happened before and may happen again.
I haven't the last two times, and I won't this time.
This company goes up for reasons that are pure pumpage. Arabs and Intel stuff cash into AMD's pockets, and it goes from 1.65 to 8 during an economic recovery when PCs are still the leading profit center for chip-makers. Rory excises the massive contract with GF that is bleeding it month by month, taking on a huge penalty but cutting back on long-term loss lock-in; so AMD goes from 1.80 to 2.70.
The market has gotten inured to much of this, though. This pump faltered at a much lower level. AMD's possible income is no longer nearly as high as when it was the #2 player in CPUs. it is now desperately chasing toymakers and applying its lipstick at a dead run. And the truth about those toymakers is coming out.
AMD's natural state is to be completely broke. They long ago achieved that with retained earnings (now $6 billion negative) and recently achieved it in tangible assets (now $100 million negative and set to be bigger in the Q1 and Q2 reports, and almost certainly Q3 as well, even if Rory plays a shell game with one-time results and Q3/Q4 charge shifting).
This stock is permanently shortable. I will never have to cover.