Advanced Micro Devices Inc (AMD)

[HailMary]

Dell will start selling AMD-based computers as early as the second half of 2006.

This makes no sense. Merom/Conroe/Woodcrest will be well out by this time and should close much of the performance lead AMD has if we are to believe all the rumors to this point. There are enough rumors that I believe them this time. Dell should have adopted AMD a year ago, but I think the window is closed now.

Sold my trading position completely and bought some out of the money Jan and Feb calls as I think Q4 earnings are going to be spectacular, but I kept most as cash. I still have a large long term position in AMD that I am also looking for an exit on. I may wait to see if Intel's new cores live up to the hype though. I don't care if I sell exactly at the peak as I already made a boatload.