Advanced Micro Devices Inc (AMD)

[Dragenn]

*** I'M USING ROUGH NUMBERS, DONT FEEL LIKE FINDING SPECIFICS. IF YOU DO YOUR DD YOU CAN HONE IN ON EXACT NUMBERS. JUST A LITTLE DISCLAIMER ***

Not saying that AMD won't recover soon, but your absolutely right. At this point l think the best thing you can do is capture some puts on the next spike, and wait for the enviable drop. If you think about it. If there is 40% margin on a $125 APU. How can they make 40% on a $60 console APU... Which is custom-embedded... LOL!

AMD did what they needed to survive and avoid bankruptcy. Im sure Nvidia is kicking themselves for letting go of the business and it's synergies. Then again apparently they didn't have the vision Rory had either to leverage the win either. The consoles was meant to pay their bills and operating cost making their APU's & servers their profits; which hasn't been selling too well as of yet. If you think about their 2B market cap, and the fact they expect 1/3 of their business to come from consoles. You'll see a nice little surprise

Operating cost by 2013 = ~500million
Expected revenues from consoles. = ~600million

Why hasn't anyone noticed this???? It's so cute when fan boys try to be investors. IF it's any consolation the price which spike again in Q3. So the patience can help those with strong hands avoid panic selling and losing money.

back to the $2.XX's