AMD’s 15 Minutes of Fame
Originally Published In the News January 18, 2008 10:01 AM
The recent decline in Advanced Micro Devices (AMD-NYSE) has been stunning. Something smelled funny here in mid-November…
A story about a hedge fund accumulating the stock of Advanced Micro Devices (AMD-NYSE) in the New York Post two weeks ago smelled funny to us, and moving a stock via the media never seems to work. The shares have been crushed since it was published, maybe somebody merely wanted some liquidity to short in to. People can read through the bullshit, and the Post article was full of it. AMD Long Squeeze
The stock is finally bouncing, although love might be fleeting:
Wall Street already had dismal expectations for Advanced Micro Devices Inc. in the fourth quarter, but it still seemed strange for analysts to sound downright congratulatory of the company’s management on the earnings conference call.
This was remarkable especially considering that the chipmaker managed to underwhelm even the lowball expectations, by reporting virtually flat revenues for what should be one of its strongest business
reported a net loss of $1.77 billion, a large part of which stemmed from a $1.54 billion goodwill charge related to its acquisition of graphics chipmaker ATI. But the results were muddled by a confusing press statement that failed to break out any per-share figures that could be used to compare with Wall Street’s own estimates.
Still, several Wall Street analysts seemed happy with the results on the call following the report. Several congratulated AMD for reaching “almost break-even” earnings in the quarter; excluding charges, the company said that it only lost 17 cents a share for the period. MarketWatch
Hopefully for AMD share holders this bounce is not of the dead cat variety. The stock has outperformed Intel over the past week, but that ain’t saying much.
AMD keeps the love despite dismal quarter
MarketWatch
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