...dumping today. That's why it's down sharply on high volume. Those poor suckers have been underwater for a long time. Better to sell and get Olive Garden dinner money than to watch it slide back under water with nothing at all to show for it.
Wait for the conference call. If ARs have ballooned again sequentially, the Street will discount the revenue number and we'll see a boatload of downgrades next week.
Tick-tock...tick-tock...the time is running out for longs.
The lemming longs are rushing headlong towards the cliff. Smart lemmings are dumping. The rest are doomed.
Great call in that article. No turnaround. Losses until Q4. Long term, sustained losses almost a certainty. The end of AMD will become clear when AMD reports tomorrow.
...immediately drop ~75 cents in AH trading.
On Monday, there will be a mad dash for the exits and the shares should stabilize somewhere in the $2.80 range. By the end of next week expect a retest of the 52 week low as the fact that there is no turnaround for the Clown becomes painfully obvious.
Y'know, I'd completely forgotten about Rory's speech when he first joined AMD. Your humorous ID brings it all back. Rory said AMD would be a pirate and a predator. I thought he was thinking "tiger" or "shark". Who knew that he really meant something like "John Wayne Gacy", "Michael Jackson" or "PeeWee Herman".
I've heard that Rory Read cries about everything, not just wolves.
He cries when he can't find a particular hue of Crayola. He cries when he accidentally colors outside the lines. He cries when he thinks someone stole his Skittles. He cries when anyone makes fun of his cheap suits or juvenile haircut.
Last I heard he was all broke up over Sony and Microsoft drastically cutting console APU orders in Q1. Oh, and about some strange little brown man named Ruckpral who, he says, made lewd suggestions to him in the men's room at AMD's Austin campus.
Read is underwater on his options at this level!
Burn, baby, burn!
Likely driven by retail investor margin calls.
The pumpers don't like the facts. AMD cut orders for console chips going into Q1. VGChartz reports weekly sales by platform extremely accurately. Console sales are way, way down in Q1 compared to the Q4 holiday season. Intel clearly took more market share in PC, laptop and server CPUs. From nVidia's report, nVidia also racked up market share at AMD's expense in GPUs.
I am looking for losses of 8 cents a share when AMD reports on the 17th, together with lots of bumbling excuses from Read and his Readtards, a new round of shareholder securities fraud suits, and Q2 guidance that will be so bad this heap of cheet is sure to restest its $1.81 low.
Incorrect. The lack of a pre-earnings run-up suggests a huge miss and weak guidance, and a 40-60% downward correction of the share price for Q2.
Intel has destroyed AMD's CPU business. NVDA has destroyed AMD's discrete GOU business. All AMD has left are consoles, where it makes $15 a unit in income. It will lose more money in Q1 than it did in Q4 on CPUs and begin losing money in GPUs too. AMD is engaged in a pricewar with two better armed, opponents. Better armed in terms of resources, technology, R&D, product performance and product efficiency.
Like lions, NVDA and INTC move in for the kill on wounded gazelle, AMD. See your sorry arze in the 1s, chump.
Like clockwork. 7 times out of 10, the pump and dump play works. 2 out of the remaining 3 times in 10 the news is worse than expected and instead of a new pump the subsequent quarter, AMD languishes in misery for a couple of quarters before resuming the pump and dump standard quarterly cycle. Only 1 time in 10 will AMD sustain pre-earnings gains through the subsequent quarter, but always such sustained runs are launched by a sharp, move up. This quarter the pump has been the most feeble pre-earnings pump in a year. This strongly suggests that we're going to see a 2 in 10 downward adjustment that will leave AMD stalled much lower than it is today for two or three quarters. In other words, a huge dump is coming, preceded by an almost non-existent pump.
My only question now is whether Read pays the price when it goes to hell after earnings or will the BOD keep this stooge around until AMD's looming end?
Get ready to re-stest all-time lows following earnings.
...bets its future on Apple and the tablet with Office for iOS. Win-win for AAPL and MSFT. Massive loss for bottom feeder in the PC space and console dependent AMD.
Ah but that's really apples and oranges. The launch period for the last gen consoles saw extremely restricted supplies. Because console makers were so heavily subsidizing the proprietary designs instead of using commodity architectures as they are doing now, inventories were much, much more constrained in 2006-2007.
Here, the critical data is that Sony and Microsoft sold more units in the first three weeks of availability as they did in the subsequent four months of availability of the PS4 and XBox One. XBox One in particular isn't selling well. XBox 360 and even epic failure Wii U outsold it over Christmas, and you will have zero trouble buying an XBox One off retail shelves. Mainly because almost no one is.
The trend, then, is rapid saturation of demand following the hype driven early adoption phase. This spells disaster for Microsoft and to a lesser extent, Sony, but epic disaster for AMD since flagging demand for both boxes impacts AMD equally.
Sentiment: Strong Buy
Not a big deal, really. XBox one is already a huge failure. Over the holidays both slow selling WiiU and ancient XBox 360 outsold XBox One. PS4 is outselling XBox One 4 or 5 to 1 depending on whose data you look at, up from 3 to 1 over the holidays. XBox Ones are sitting in inventory on shelves worldwide. There is low demand and no backlog or waiting. How long before Microsoft has to pull the plug?
"AMD has always been a great short-term trading play but not a long-term investment."
The plain truth.
"Let's start with gross margins. AMD's gross profits have been on the decline since 2010 and the declining gross margins account for much of this. As the company is moving away from the PC market in an attempt to diversify its portfolio, the company's margins suffered greatly. From 2012 to 2013, AMD's gross margin fell from nearly 50% to just north of 20%."
Telling it like it is.
"AMD cut its research and development expenses from $1.8 billion to $1.2 billion..."
"As the PC market started declining with the introduction of the tablet market, AMD's debt piled on and the company's book value fell from nearly $6 billion to $544 million, which gives it a price-to-book value ratio of 5.15, which is higher than a historical average of 3."
Not good, AMD. Not good at all.
"Despite AMD having a market share of 100% in gaming console market, the analysts have been very skeptical about the company's chances of turnaround without a strong presence in the PC market."
Losing market share in PCs to both Intel and nVidia, despite the hype.
"Currently, this company is a turnaround play and most of the metrics defining its valuation don't look that cheap. When a troubled company is cheap, this will limit the downside (for example, think of Nokia last year as it was trading near the book value) and we may not see this with AMD."
The coup d' grace; the clean-kill head shot: AMD is overvalued for a company in dire straits like it is. Upside is priced in at this level, unlike other turn-arounds which were valued low during their efforts.
This means limited upside in the unlikely event AMD pulls it off, and unlimited losses for longs should perma-bungler AMD make even the slightest execution misstep.
Suck it down fantards. Suck. It. Down.