"I've never heard of such a thing"
You should do your research before buying a tech stock. This has been a known variable for the last year and was DIRECTLY responsible for the shortage and VERY high prices of AMD GPU's in the Nov - March time frame. This eased in April and completely resolved in May...as the switch to ASIC mining took place.
Down waaaaaaaay too much in 4 days. Chart is setup nicely for a bounce. While the $50M charge to refinance debt by redeeming the 2017 bonds at 8.125% with the new 2024 bonds at 7.0% will be negative for a quarter, the long term impact is positive for AMD.
While there are legitimate concerns for AMD, specifically the slowdown in consumer PC sales and AIB partner GPUs and resultant inventory builds per Digitimes and other sources, the long term restructuring that AMD embarked upon years ago is SOLIDLY intact. As long as they see a little bounce from the corporate PC refresh that Intel alluded to earlier this month, and console sales remain strong, AMD should be fine. Any new announced wins in either semi-custom, embedded, or dense server would be HUGE for this quarter and help mitigate the negativity surrounding the $50 M debt restructuring cost.
Just my 2 cents.
BTW, after a 20/1 put/call ratio on Friday, the put/call ratio is solidly in the favor of the Calls today...specifically the OOM calls. Volume is still HEAVY in the common shares and options so the bets are being placed and the lines drawn here before earnings.
The $3.50 and $4.00 July PUT volume went through the roof on Friday...almost 30,000 contracts of EACH were traded...WOW!! I REALLY want to jump back in on Monday but that is concerning for me.
Any ideas on why the volume was so heavy?
$55 - $64 SOLD $9000 gain
$65 - $67 SOLD $2000 gain
$65 - $74 SOLD $9000 gain
All since May 13...
I would trade it between the 200 SMA and 50 SMA using the 21 EMA as support. Always buy RSI 30-50...always sell RSI over 70.
They only missed on OpEx...decent report overall. $663 CS revenue was slightly better than expected.
The REAL battle is at the 200 day moving average at $3.73!!
Most were bought in January. I almost bought the $5 calls in early January when I saw the big buys...they were .06 at the time. Most of the other calls were bought in Dec/Jan at prices 5-6 times as high. I agree they may be a hedge but the prices paid were MUCH higher.
Quarterly Earnings for last 3 years includes guidance, variance, misses, meets, beats and stock reaction 1,2, 3 months after report for each quarter.
"Wins" are hard to quantify and are typically left open to possible upside adjustments to guidance unless there are firm numbers agreed to in advance with the OEM.
"Demand is so strong that a Global Foundries was added as a second source for these chips."
This statement sums up your knowledge of AMD & the 2013/2014 WSA agreements very well. In sum, you are 100% cluless and will lose all your money.
The ONLY things that will move the stock:
~ CS revenue
~ Gross Margins
The "wins" or any other forward looking "opportunities" is just noise...
I was long 27,500 shares going into last quarter...I sold after so I have no position currently. I am concerned the Computing Solutions group (CS) revenue will be light. AMD has been losing share to Intel in the traditionally strong low end...especially laptop...and I don't see that trend reversing. The bright spot is graphics...both discrete (laptop & desktop) and semi-custom (consoles). ARM servers, while promising, are still 1-2 years out from being meaningful to revenue and eps.
It will come down to what it always comes down to for AMD:
~ CS Revenue
~ Gross Margins
The risk reward isn't now for me...Q2 or Q3 may be different
Everything I said is true and 100% above your cognitive ability to comprehend...
Keep dreaming that the move to GloFo was because of "high demand"...or that they make the same part(s) at 2 different fabs.
The level of knowledge concerning the history and significance of the financials at AMD on this board is SHOCKINGLY low. Nothing but a bunch of mindless pumpers and idiot bashers...both equally devoid of knowledge or the ability to discuss the financial metrics.
There were 64,500 April $5 Calls written in January...what happened to those? They are likely ALL LOST...written at .06 in Jan worth .01 now. There are another 220,000 out of the money calls ($4, $4.5, $5.5, $6) that are at risk of being WORTHLESS as well...mostly all written in January.
Call volume is a VERY poor indicator of future stock pricing.