Advanced Micro Devices Inc (AMD)

[rupert]

72% of AMD's common is held by Institutions (including 5% holders) and Mutual Funds. Not much supply there for big buyers until current holders meet their price targets.

In the run-up before 1Q results and the sell-off afterwards, it is probable that some institutions were trading AMD aggressively. No doubt they will be considering the same again in 2Q. But as the year advances there is decreasing scope for this. At some point the stock will move to a higher range to reflect its future earnings.

IMO we are approaching a tipping point. I am not yet convinced that good 2Q results will be enough to shift the balance. I think we may have to wait until the run-up in September and early October before 3Q results. And even then we shall have to deal with the typical market uncertainties of October, although, this year, the November election should prevent a broad market sell-off.

53% of the common has been sold short - as high as it has been this year. Perhaps this might provide the spark for a near-term explosion.



http://finance.yahoo.com/q/mh?s=AMD