Duke of URL: Re: "You just don't get it, do you?"
There IS no reasonable belief that with a tighter money market in the future, they will be able to continue to borrow to stay in business.
First off, it is not clear at all that AMD will have to borrow to stay in business. Last I saw, they had about a billion in cash or cash equivalent. There certainly *IS* a reasonable belief that AMD will stay in business. If there were no such reasonable belief, then every fund manager and investor would have dumped AMD altogether. Currently, institutional ownership constitutes more than 50%. I am not saying they are right or wrong, I am merely stating fact.
This profit thingy, well that's the way businesses are unemotionally analyzed, without the rah rah mine is bigger than yours is thingy.
Isn't that what I said? Did you really read my post?
Companies that make money are good and they go up and down and up; companies that don't make money go up and down and down.
Not entirely true. Some companies that make money go up and up and up, and others go down and down and down. But it is certainly true that making money is an important factor in long-term share price appreciation. I do not recall saying that it wasn't.
The understanding of this sort of thingy is how good investors make money and is also called capital allocation.
Well, that is not exactly how I would define "capital allocation" but I do agree that understanding that "making money is good" is important to any investment strategy.
Those that prefer to post eloquently are called "losers".
In the future, I will endeavor to use the word "thingy" more frequently lest I be accused of eloquence and labeled a loser.
The stock price follows the value of the company not the reverse, and those that consitantly talk about short term movements, unless they are refering to capital generation, are better off buying bonds, don't you agree?
No, actually, I don't agree. The stock price follows the perceived potential thingy of the company, not necessarily the value of the company. If, in fact, you were correct and the stock price represented the value of a company, then every company that is currently losing money would have a price of zero. There are a lot of good companies losing money right now. The fact that the share price thingy for these companies is currently non-zero indicates that the market perceives the potential for these companies to make money in the future.
As for short-term investing, well there are many investment strategies. I prefer diversification in both my portfolio thingy and my investment strategy thingy. I have a portion of my portfolio in diverse long-term investments, a large portion is currently in cash, a smaller portion is in a bear fund, and another small portion is for speculation. I use some of my speculation funds for swing-trading and short-term speculation, and the rest is invested in some high-risk issues. I will commit my cash to more diverse long-term investments when a clear recovery is underway. My strategy thingy has been largely successful, but is not for everyone. To each his own, and caveat emptor.
AI
