Non-News for AMD

The Post is reporting that Galleon recently purchased “several million shares” of AMD”, according to a trader involved in the trade.

Why this is news is beyond us. Galleon manages around $7 billion, and this would not be news unless they filed a 13D, which would still only be a $350 million position in the stock. Maybe it is a slow news day, but this does not seem meaningful, unless you like to question peoples motives for leaking or running this story.

Throwing Rick Sherlund into the mix is a stretch as well, as he is spending his time mainly on a crossover fund, kicking the tires of non-public companies as much as public comps. We would love to know what is going through Todd Deutsch’s head. He is having the first bad stretch of his career, as this market continues to favor stocks that are more likely to show up as shorts in his portfolio. It does not appear that The Captain’s fund has made up any ground from the end of September, not surprising given the state of value vs. growth:

Galleon said in its update this week that the Captain’s fund has a higher risk/reward profile than other funds run by the firm. It also usually shorts growth stocks and takes long positions in value shares, an investment style that’s out of favor this year, the firm added. October 11, 2007

Galleon is generally having a decent year. And Deutsch will be back. But a flaky story in the Post has us wondering if we should shoot against AMD. Who needs buyers for this stock?

AMD sure looks dead in the water, although there was talk of private equity interest in the company back in the spring, when deals were still alive.  If there is a catalyst out there we would love to hear about it. At first blush it would seem to be sporting a valuation that merits further investigation, although maybe it is not at a trough valuation quite yet.

The stock seems to have found a floor, but any rally will not include us.

BIG STAKE IN AMD FOR FUND
New York Post
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