Analyst Upgrades AMD to "Buy"

Advanced Micro Devices has been upgraded from Neutral to Buy. Price target increased from $8.50 to $10. Positive events lead us to believe that AMD's risk/reward is now compelling...It all happened faster than expected - AMD's capital structure improved as a result of Intel’s $1.25B settlement AND yesterday’s announcement of AMD debt restructuring actions. We believe AMD's debt of ~$3.7B will be reduced by ~25% (assuming the full $1B is tendered), while also lowering interest expense slightly less, ~20% (assuming new $500M prices between 8% and 12%).

Now that the AMD/Intel licensing agreement no longer requires them to produce the majority of their chips, I wouldn't be surprised to see AMD sell off the remaining majority share they own of Global Foundries to ATIC in the next few days. That will be another huge influx of capital.

Thank you Nvidia!!!

And if TMC can produce their 40nm GPUs in quantity, they'll have a bit of a honeymoon on the graphics front until Fermi comes online. Big if.

Make that TSMC, of course.

Originally Posted by CaptNumbNutz

Now that the AMD/Intel licensing agreement no longer requires them to produce the majority of their chips, I wouldn't be surprised to see AMD sell off the remaining majority share they own of Global Foundries to ATIC in the next few days. That will be another huge influx of capital.

That and the influx of settlement money from Intel probably helps the situation quite a bit.

Too bad they didnt consider it a buy when it was around a buck or two per share. They wait till it increases in vale to what six or 7 bucks now? Its probably topped off once AMD burns through the 1.25 billion Intel gave them.

Analysts Rule #1...

You have to wait till it peaks to recommend it... that way all youor inside trading buddies can dump thier shares to the stupid fucking dumbasses who actually listen to "analysts" and walk away with thier maximized profits.... and stick the suckers with an overpriced dog.

Who then loose thier asses, the dog crashes, and once it hits the minimum, the analyst says SELL SELL and the playas buy it up cheap, run it back up artificially, and when it peaks again... RINSE REPEAT.

The time to buy was last March. Wait and watch for the next bottom then buy, don't BE the sucker, be the guy who screws the sucker.

I bought about 2 years ago @ $5 this is pretty good news.

BS, BS, BS, BS analysts!

I've been burned three times with AMD stock.

They can keep it. This time next year they'll probably be back down a 2 bucks a share again if they don't give Intel any competition on the CPU side. By then they'll be worried about Larrabee too.

I'd short them if you have them...

I have high hopes for AMD's stock, but I'd like to see something tangible before I buy. Their GPUs are good but strong CPU benchmarks will untimely determine if AMD has any large growth potential. This is good news, but I don't think it's time to buy just yet. I think we will know by about next year at this time, and when we find out there will still be a lot of money to be made.

They are right, there is no reason to sell AMD now, but you should buy the stock long before it reaches $7 like now.

The time to buy was last March. Wait and watch for the next bottom then buy, don't BE the sucker, be the guy who screws the sucker.

The problem is that you never know when the "bottom" has hit until it (ie. the bottom) has already passed.

Your strategy seems to be "short when everyone else buys," which at least in my opinion, actually isn't a bad one as long as you have the means to hold out.

Originally Posted by xX_Jack_Carver_Xx

The time to buy was last March.

I'd say more like November 25, 2008 @ $1.80/share.

I don't know that we'll ever see levels like we did in 2006 of $30+/share. I would definitely not buy the way Intel has been hammering AMD for the past 2 years or so.

Originally Posted by BoogerBomb

Too bad they didnt consider it a buy when it was around a buck or two per share. They wait till it increases in vale to what six or 7 bucks now? Its probably topped off once AMD burns through the 1.25 billion Intel gave them.

Originally Posted by xX_Jack_Carver_Xx

Analysts Rule #1...

You have to wait till it peaks to recommend it... that way all youor inside trading buddies can dump thier shares to the stupid fucking dumbasses who actually listen to "analysts" and walk away with thier maximized profits.... and stick the suckers with an overpriced dog.

Who then loose thier asses, the dog crashes, and once it hits the minimum, the analyst says SELL SELL and the playas buy it up cheap, run it back up artificially, and when it peaks again... RINSE REPEAT.

The time to buy was last March. Wait and watch for the next bottom then buy, don't BE the sucker, be the guy who screws the sucker.

DING DING DING

Analyst upgrades in many cases should be seen as contrarian sell signals. It gets the little amateur retail investor to buy so that the smart money can easily unload the shares that they had bought earlier at bargain prices.

Originally Posted by alexyang

The problem is that you never know when the "bottom" has hit until it (ie. the bottom) has already passed.

Your strategy seems to be "short when everyone else buys," which at least in my opinion, actually isn't a bad one as long as you have the means to hold out.

Timing an absolute top or bottom with any real consistency is pretty much impossible. What one can do with technical analysis is evaluating risk based on a combination of analysis tools. By looking at the oversold/overbought status of a stock (stochastics, RSI), volume, support and resistance levels, moving averages, etc etc, you can decide that there is less risk buying or selling at certain price levels. Smart money figured that it was less risky buying AMD last Spring than it is to buy it now. Looking at the chart there were no sellers driving the price further down for months, and it coincided with the low price levels from 2002.

In hindsight there was accumulation going on, and now those buyers are dumping onto people that think they're getting a good price based on some analyst's "upgrade".