I think Doerr got put on the board because Kleiner Perkins is concerned about their investment. I read it as lack of confidence. They already have Gordon on the board to represent their interests. Why double down on director seats? Don't they trust a guy with the nickname "Bing"? What is Doerr bringing to the table that Gordon cannot supply?
Just between you and me, it is my observation that the more cash a company has the less willing management is to use it, especially the CFO. They LOVE seeing those bank accounts get fatter and fatter! So as cash balances go higher and the pressure to invest intensifies, the more stringent the criteria for acquisitions, investment in R&D, etc.
That is the question that was posed? What is this management made of? Will they make decisions that are in the interests of investors? They could have reported net profits already if they had cut costs earlier and reduced stock compensation.
Tempting Price For Advanced Micro Devices [View article]
Management's comments during the conference call should provide information on plans for new product introductions and the business pipeline. Stocks are not priced on past glories - only the future!
Tempting Price For Advanced Micro Devices [View article]
I believe the gaming console opportunity is priced into the stock at this point, because it is a topic that is so widely discussed already. Like most other stocks the majority of the attention is on the top-line. Most of the opinion pieces on AMD relate to its devices for the gaming market. For a bit I thought that I was to be proven wrong as the announcement related to Microsoft and the Xbox created some interest and an uptick in trading activity. Then the stock simply sank back to trading as usual. The real money in and around AMD just yawned. This would suggest that the information on Microsoft and the Xbox was already priced into the stock.
There is of course no way other than a survey of AMD traders to know if this is the case. So you must qualify the statement with "seems" or "appears" so as not to make a claim that cannot be documented.
Tempting Price For Advanced Micro Devices [View article]
I said "appears to be" because I have not seen all the research reports written by the analysts who are contributing to the consensus estimate. Thus I am speculating a bit that all the analysts who follow the company and publish estimates have fully considered the gaming console market and have included those sales in their earnings model. If you could get all the models or model descriptions you would know for certain if the consensus estimate already reflects a full consideration of the console market. IF NOT or if the console market opportunity is greater than what is already reflected in earnings models, than AMD could surprise to the upside.
Tempting Price For Advanced Micro Devices [View article]
I received the following message including additional comments on AMD. Thought I would share this and my response which follows the comments.
"Do you realize that AMD has other significant businesses besides the potential of a 64bit ARM chip?
AMD has only one competitor in Graphic chips, NVDA.
There is appx. a 5 year upgrade cycle in game consoles, and ALL 3 of the console makers will be using AMD chips, rather than NVDA...
Yes Debra, you missed a HUGE part of the AMD story.
In Q3, coincidentally the quarter that AMD predicts a return to profits, both Sony and MSFT will be buying chips from AMD for their NEW game consoles...
I realize you are an out of touch old woman, but the top consulting firms predict that starting Q4, and going forward for the next few years, the 3 biggest (and ONLY) gaming console platforms ( Nintendo Wii, Sony play station, MSFT X-box) will sell appx. 44 million a year... ALL with AMD graphic chips at appx. $60 each.
At present t here is a lull in console sales as people wait for the NEW consoles to come out later this year.
In past years NVDA earned substantial profits from licensing and selling chips to these companies. .. But they blew it!!!
AMD got ALL the business.. Do you know why?????
NOW, do some REAL research before you write any more half baked articles.
-K___ L_____ xxx-xxx-xxxx
BTW, did you know where the 64 bit design behind Intel's XEON server chips came from? From AMD!!! Its called AMD64!!!! Intel fell on their face with their Itanium 64bit design, and had to license from AMD!!!!
AMD has more experience in DESIGNING 64bit server chips than anybody.
Intel won because AMD could not manufacture efficiently...
That is NO longer a problem since AMD dumped Global Foundries, and NEW ARM 64bit will be manufactured by TSMC.
My response:
Yes, I do have a few years of experience, which have helped me understand that no matter how much I might "like" a company, it never pays to "fight" the crowd. It only pays to take advantage of the crowd behavior. I am a contrarian investor and have done well with stocks that are beaten down and unappreciated for future potential. You seem to think AMD is that sort of company. I do not disagree.
The point of my article was not that AMD has only the server to its credit. The point is that this is probably the only element that will get much attention in coming months and it is a long slow process. Among the product accomplishments you mention, none appear to me to rise to the level of serving as a compelling driver to revalue the stock higher. Most are in the past and have been disregarded by investors.
The gaming console market opportunity appears to be baked into the current consensus estimates and it is not taking the company to profitability. That is why the stock price is down. Thus the only thing that is new and potentially incremental to the current view AMD and current consensus estimate is the new server chip.
You should have posted your comments publically - even the reference to "old woman." I am "seasoned" but I am also a professional and a gentlewoman.
Tempting Price For Advanced Micro Devices [View article]
Since I am not a day trader myself, I missed seeing the potential you mention. I take a long-term view and then look for the right short-term conditions to get a good position. Thanks for the comment.
Tempting Price For Advanced Micro Devices [View article]
That could be the case, particularly since the company has weathered difficult times in the past.
However, from an investment standpoint, the lack of momentum in the near-term suggests that an investor would be better off deploying capital elsewhere until AMD comes back to life. The 1-year low is around $1.87. Yes, there could be a brief upturn in the stock price if there is any good news in the first quarter earnings report. However, for a long play it might be better to wait for a change in sentiment before taking a long position.
Tempting Price For Advanced Micro Devices [View article]
Please note the disclosure. The author had no position in AMD - short or long before the artile was written. I can report that I have no positin in AMD - short or long - now.
Tempting Price For Advanced Micro Devices [View article]
You read too much between the lines. There was no assumption that only the servers are profitable. It is simply that AMD's most significant new product announcement is in their server line.
Arena Pharmaceuticals' Diet Drug Drama A Nail Biter [View article]
The volume of comments is impressive. I had no idea that a short article discussing a short-term trading tactic would inspire such lengthy and wide-reaching comments. I am both informed and impressed.
A Sip Of The Zynga Kool-Aid [View article]
A Sip Of The Zynga Kool-Aid [View article]
A Sip Of The Zynga Kool-Aid [View article]
A Sip Of The Zynga Kool-Aid [View article]
Tempting Price For Advanced Micro Devices [View article]
Tempting Price For Advanced Micro Devices [View article]
Tempting Price For Advanced Micro Devices [View article]
There is of course no way other than a survey of AMD traders to know if this is the case. So you must qualify the statement with "seems" or "appears" so as not to make a claim that cannot be documented.
Tempting Price For Advanced Micro Devices [View article]
Tempting Price For Advanced Micro Devices [View article]
Tempting Price For Advanced Micro Devices [View article]
"Do you realize that AMD has other significant businesses besides the potential of a 64bit ARM chip?
AMD has only one competitor in Graphic chips, NVDA.
There is appx. a 5 year upgrade cycle in game consoles, and ALL 3 of the console makers will be using AMD chips, rather than NVDA...
Yes Debra, you missed a HUGE part of the AMD story.
In Q3, coincidentally the quarter that AMD predicts a return to profits, both Sony and MSFT will be buying chips from AMD for their NEW game consoles...
I realize you are an out of touch old woman, but the top consulting firms predict that starting Q4, and going forward for the next few years, the 3 biggest (and ONLY) gaming console platforms ( Nintendo Wii, Sony play station, MSFT X-box) will sell appx. 44 million a year... ALL with AMD graphic chips at appx. $60 each.
At present t here is a lull in console sales as people wait for the NEW consoles to come out later this year.
In past years NVDA earned substantial profits from licensing and selling chips to these companies. .. But they blew it!!!
AMD got ALL the business.. Do you know why?????
NOW, do some REAL research before you write any more half baked articles.
-K___ L_____ xxx-xxx-xxxx
BTW, did you know where the 64 bit design behind Intel's XEON server chips came from? From AMD!!! Its called AMD64!!!! Intel fell on their face with their Itanium 64bit design, and had to license from AMD!!!!
AMD has more experience in DESIGNING 64bit server chips than anybody.
Intel won because AMD could not manufacture efficiently...
That is NO longer a problem since AMD dumped Global Foundries, and NEW ARM 64bit will be manufactured by TSMC.
My response:
Yes, I do have a few years of experience, which have helped me understand that no matter how much I might "like" a company, it never pays to "fight" the crowd. It only pays to take advantage of the crowd behavior. I am a contrarian investor and have done well with stocks that are beaten down and unappreciated for future potential. You seem to think AMD is that sort of company. I do not disagree.
The point of my article was not that AMD has only the server to its credit. The point is that this is probably the only element that will get much attention in coming months and it is a long slow process. Among the product accomplishments you mention, none appear to me to rise to the level of serving as a compelling driver to revalue the stock higher. Most are in the past and have been disregarded by investors.
The gaming console market opportunity appears to be baked into the current consensus estimates and it is not taking the company to profitability. That is why the stock price is down. Thus the only thing that is new and potentially incremental to the current view AMD and current consensus estimate is the new server chip.
You should have posted your comments publically - even the reference to "old woman." I am "seasoned" but I am also a professional and a gentlewoman.
Debra
Tempting Price For Advanced Micro Devices [View article]
Tempting Price For Advanced Micro Devices [View article]
However, from an investment standpoint, the lack of momentum in the near-term suggests that an investor would be better off deploying capital elsewhere until AMD comes back to life. The 1-year low is around $1.87. Yes, there could be a brief upturn in the stock price if there is any good news in the first quarter earnings report. However, for a long play it might be better to wait for a change in sentiment before taking a long position.
Tempting Price For Advanced Micro Devices [View article]
Tempting Price For Advanced Micro Devices [View article]
Arena Pharmaceuticals' Diet Drug Drama A Nail Biter [View article]
Debra