Advanced Micro Devices Inc (AMD)

[bobs10]

Yeah, these things take time.

Kind of like the old saw about the aircraft carrier taking 10 miles to turn around. AMD has been beating up INTC for about 5 years now, as reflected in the relative stock price actions, but if you looked at INTC's earnings/market share alone, you would swear that the company was still in top form.

The problem is that INTC's/DELL's trajectories are parabolic and about at their apex. Indeed what is important is the rate of ascent which is what the stock market has been focusing on. In that department, both have seen a lot better days, and neither is likely to have a rocket stage left that would put them into orbit again.

It looks much more like the market is saying that all that's left is a fiery return to earth and a lot of time in the hanger trying to put things back together.

But there are those that will continue to say both Dell and INTC are great values based on earnings even as those earnings start to fall. Earnings are a terrible indicator to use in turn around situations, both up and down.