Advanced Micro Devices Inc (AMD)

[rupert]

It's impossible to verify why a few people bought and sold a few shares after hours. My gut feeling is that initial reaction to the financing announcement was negative. It sounded to some like AMD was obliged to re-schedule its loan payments, or take on new debt, or even dilute its shares with a financial instrument that may be convertible. Had the latter been true then one might have expected more short selling hedging by the note-buyers.

But on the basis of the information provided, none of the above appears true. It is true that AMD is rescheduling some of its debt, but this is a positive initiative not a forced, negative reaction.

I suspect that Max-Pain jitters, and uncertainty about the recovery in Intel's share price, will have more of a dampening effect on AMD's price in the next few days.