As the chart below shows, AMD has been one of the worst affected stocks. The stock has moved from $8.2 in March to $2.26, losing approximately 75% of its value in a matter of months. However as my analysis below shows, AMD has bottomed out. At these price levels, the company has 80% of its market cap as cash, therefore I believe AMD is ready to be short squeezed.
Mubadala Development Company, the investment arm of the government of Abu Dhabi, increased its share of AMD by 19 percent and took an extra board seat last month, in a move that positions the company to bail out AMD should their cash reserves dip too low.
Mubadala became the largest shareholder of AMD in a transaction announced in 2008 under which the investment company bought the chipmakers’ manufacturing facilities to create a made-to-order semiconductor producer called Globalfoundries. AMD is one of that company’s largest customers.
AMD’s share gains have been exaggerated as some investors were forced to buy the shares to cover short positions, said Acree. That and the recent stock slump have made the shares volatile, said Ambrish Srivastava, an analyst at BMO Capital Markets.
Your stupid greed is the very first clue of amateur investing. Amateurs ALWAYS get taken. Set a realistic goal, leave a lot on the table, and move on. Be ready at the switch along the way. No one on this planet has ever or will ever accurately predict the future - even AMD.
For just ONE example (of an infinite others), if intel wants AMD around, all intel needs to do is raise their low end prices (so that AMD can do the same and earn a small profit while intel earns much more), then AMD will rise to well above $5 and you are ground beef! The entire world MUST pay either AMD or intel because there is no other choice if the OEMs plan to stay in business. No other company can produce 400 million chips annually. AMD's very existence depends entirely on intel. Period.
No one can predict the future, even if I or MaxFacts posts 200 more doomsday stories. Have you got it greedy amateur more-on?