According to MLNK Q2 report (see below), we increase our MLNK target to $18:
Gross margin of 11.6%, compared to 10.0% in the second quarter of fiscal 2013
SG&A expenses of $19.6 million, a 17.5% reduction compared to the second quarter of fiscal 2013
Operating income of $1.2 million compared to operating loss of $8.5 million in the second quarter of fiscal 2013
Adjusted EBITDA of $8.6 million compared to $5.4 million in the second quarter of fiscal 2013
Net income of $1.1 million, or $0.02 per diluted share, compared with net loss of $12.6 million, or $0.29 per share, in the second quarter of fiscal 2013
Looks like Big One is trying to collect AMD in a cheap price.
But do not worry:
Here is the truth:
AMD's net profit was $89 million, or 12 cents per share, in the quarter, compared with a loss of $473 million, or 63 cents per share a year earlier.
The good news to AMD is:
By April, Microsoft Windows XP will be expired. Which means many persons or organizations might have to buy new Computers, if they are currently running with Windows XP. You will see next a few quarters AMD profitable. This fundamental information is supporting the Flag Chart pattern.
If you read the 6 month chart of KO, you will see an Inverse Head And Shoulders chart is formed. If this chart breakout, $45 should be the target.
Looks like a Long Term Double Bottom is formed if you read the long term ACLS chart.
This chart will easily bring ACLS to $6 as the first target; and $10 as the second target.
For a big picture, if you read MLNK historical prices, you will notice that even MLNK reaches $40, it is NOT high comparing with its prices in 2000.