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Advanced Micro Devices, Inc. Message Board

  • izadyar1 izadyar1 Oct 17, 2013 4:26 PM Flag

    why stock is going down then

    any clue

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    • Why wouldn't it go down? Q4 should be the biggest quarter for console chip sales, yet AMD is forecasting only a tiny revenue growth rate. This, after having grown revenues sequentially the quarter before by 26%. Any time the street sees sudden growth in revenues screech to a stop just as suddenly, they know the company is playing games with the channel and does not actually have a sustainable growth engine. In other words, AMD debased itself to have console makers buy more in Q3 than they really wanted to needed in order to try and trick the street into a big pop in the share price. For example, Rory Read, the CEO exercised options for 300k shares on August 26th, just before he was blacked out for the quarter. At that time the stock was at $3.65. Obviously he was hoping to foll the street into thinking that AMD's business was much more sound than it actually was and cashing out those shares after the CC. The Street of course saw through this nonsense, recognizing obvious channel stuffing, and instead punished Rory and his clown posse with a 25% haircut, leaving Rory holding depreciated shares.

      To make matters worse, AMD forecast that its already horrible margins in Q3 would get even worse in Q4, providing further evidence of irresponsible channel stuffing by AMD. By pulling deals that should have been in Q4 into Q3, and incenting OEMs to carry more inventory than they need, the only way to sell more to those same OEMs in Q4 is to drop the price further, eroding margins. AMD also owes a $200 million payment to Global Foundries on December 31, 2013, which will either destroy Q3 or Q4, depending on when they choose to reflect that payment.

      In short, AMD remains a clown company run by imbeciles, destined to lose a lot of money all through 2014 despite all the hype about consoles. Get ready for a $2 share price soon.

    • Growth estimate of 5% +/-3% spooking analysts. They wanted forecasts of +$1.52B in 4Q revs. (if you can believe all that #$%$ as reasons for dropping the stock. It could just be they are crooks.)

    • They are projecting a drop in operating margin for the 4th quarter. For those looking for a spark to the downside, that ought to do it.

    • Are you really that dumb?

      The stock ran up about 20% over the two weeks prior to earnings which says that investors expected a blow out. AMD beat whisper by a penny, and you still have the CC to deal with where we'll hear all kinds of nonsense which will bleed it another 3%.

      The stock at close today was priced as if AMD already had beat by a dime. Due to long side inflation before earnings, this was a miss and will be treated as such. These results are good for about $3.50 in share price at best.

    • This makes no sense... BEATS everything... return to profitability.... DOWN 8%. This is a joke. I wish people could only be long in a stock or not involved at all. This whole options and shorting business is a total scam that should never ever have been allowed.

    • holding it down so shorts can cover....

 
AMD
3.69-0.07(-1.86%)Sep 23 4:01 PMEDT

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