Advanced Micro Devices Inc (AMD)

[Mike1956]

I think it might sink to about $2.50 and then works its way back up over next month. The fact that people are buying now leads me to believe the effect could be minimal after a bad 4Q report. The bad report is not totally unexpected though because it will take some time for AMD corrective measures to show a positive result. The analysts will be looking for a gross margin increase which probably will stay the same or slip slightly. I think most investors know that so they are prepared for a bad report. It could go up or sink some but probably not rapidly down because the shorts will cover if it starts to sink rapidly. If I knew for certain I'd sell and buy back but that could be risky if the stock unexpectedly goes up instead of down. In the long run I think the measures AMD took will take effect and the price will go north of $5 or $4.