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AMD (AMD -6.3%) and Marvell (MRVL -11.9%) get downgraded to Market Perform by FBR's Craig Berger...

AMD (AMD -6.3%) and Marvell (MRVL -11.9%) get downgraded to Market Perform by FBR's Craig Berger after providing more bad news (I, II) yesterday afternoon. Berger is worried about AMD's cash burn, lack of gross margin guidance, and upcoming price cuts, and thinks Marvell's loss of CFO Clyde Hosein is an indictment of its "culture and founder-CEO control" - he considers rival LSI a better buy. Also downgraded is Nvidia (NVDA -2.1%), for which Berger cites general PC worries. (AMD transcript)
Comments (9)
  • "culture and founder-CEO control" - wonder how many companies can be accused of that. Double standard here? Maybe the management should take the company private and get out of the public market. (Applicable to plenty of companies that are not benefitting in the public markets.)
    19 Oct 2012, 10:36 AM Reply Like
  • Marvell is an atypical case. The CEO's wife (a co-founder) is a VP, and his brother is its CTO.
    19 Oct 2012, 10:45 AM Reply Like
  • Is it really atypical though? Other companies run by founders have their close friends in senior positions, and I've long questioned their judgment.


    With the stock sinking perhaps they can take the family business private again. Einhorn could turn his loss into a private investment, assuming he lost money or is still invested in the name.
    19 Oct 2012, 10:59 AM Reply Like
  • Having friends in management isn't uncommon for a tech company (particularly if they're co-founders of early employees), but having close relatives in top spots so many years after going public is pretty unusual.
    19 Oct 2012, 11:58 AM Reply Like
  • Tech stocks are leading the market correction that is beginning as we speak.


    IBM, MSFT, GOOGLE...big names are disappointing. Tech is leading the reversal down:

    19 Oct 2012, 10:55 AM Reply Like
  • This market reminds me somewhat of 1998-2002, except commodities are much higher in price levels, reflecting the inflation.
    19 Oct 2012, 11:10 AM Reply Like
    this analyst got it wrong
    19 Oct 2012, 11:51 AM Reply Like
  • I really do feel that he has gotten it wrong especially on AMD this is just a ploy to get the stock lower so when semi good news comes out everyone can make a killing on it This has nothing to do with lack of computers sales Who do you think makes the processor and chipsets there are only two company's that do make them. Why is all this focus on tower type computers Most business will still use them and also a lot of people will buy them cause they still can't afford Ipads or laptops. His statement is just that a statement. The company has been reconstructing there business model. and making strives in the right direction.
    19 Oct 2012, 04:50 PM Reply Like
  • I also believe that for NVDA at least, there is a huge amount of Stock Price Manipulation which is why, even though the Balance Sheet is a fortress, you can't play the stock like that.


    So, when it rises 20% sell the stock. Immediately write an out of the money Put to get back the stock at a lower price. After the price bottoms, buy the stock, write a covered call.


    Quite simple and easy to do.
    19 Oct 2012, 05:27 PM Reply Like
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