Advanced Micro Devices Inc (AMD)

[facsnotfiction]

bobs10
I think the market is reacting the same way it always does when AMD warns. AMD stock gets punished. The only thing out of character is usually AMD would have passed this news on during the first week of the new quarter. I got out of the stock this past December 7. I got out because I had decided that if the stock got around $25 before Christmas, there would likely be little upside after Christmas because of seasonal trends. I also had heard like many others that things were not great on the Flash Side which is a huge part of AMD's business. I knew the only way AMD could go higher would be after earnings if there was a significant earnings upside, with a good outlook going forward. I have watched this stock cycle up and down over and over again and I wasn't going to get greedy. Even though AMD has some growth potential on the CPU side, they are still basically a cyclical and not a growth stock. My strategy goin forward is to stay on the sidelines on AMD until somewhere in the July - September timeframe, when the stock price will likely be lower than it is now. Then if things are still looking decent on the CPU side, and not that bad on the Flash Side. Then I will buy back in AMD for the typical Christmas run-up. I would not be a buyer of AMD now. This stock is likely to trade down into the low teens and maybe even down to the $11-$12 range.