Advanced Micro Devices Inc (AMD)

[bobs10]

Today's market

A couple of things I've not seen mentioned yet. One is the necessity for IRA holders over 72 to make a distribution based on their life expectancy before year-end. I was forced to sell some of my mother's AMD for that very reason. Second, January is bonus time and a lot of those funds get invested in the market.

A cooling off may be a good thing for AMD as it seems to be fairly valued where it is now, given what is known. AMD is still being valued a lot higher than INTC and the analysts are projecting less earnings than INTC for q4. I don't expect much happening in the way of change in the analyst’s positions before earnings. Of course by then it will be too late as the market will probably over-shoot fair value betting on continued exceptional growth.

Anyway, I expect this correction to be less pronounced than other recent ones, with AMD's price somewhat above it's recent high by earnings.