amdinvestor

Using Volatility as an Investment Tool

Your comment about Mubadala group is very relevant to me. Mubadala group, composed of young, talented entrepreneurs, has bought 49 million AMD shares at $12.4/share (that's 622 million dollars). They did this with financial advice from Lehman Brothers, and Morgan Stanley.

AMD is trading at $6.3, assuming Mubadala is competent, then I expect it to at least return to the $12.4 range. I consider AMD a low-risk investment at current levels. I've since been buying up AMD, I bought AMD last week at $6.3.

Here's an analysis:
amdinvestor.com/2007/1.../

The Next Credit Crisis Will Originate in China

The negative effects of a Chinese crash will naturally have a direct effect on American stocks. Already sentiment is low due to the chance , no whisper, of a recession here. However perhaps this is a good time to stock up on cash, and pick up some bargains, post olympics.

Dan

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amdinvestor.com

Intel Corporation: A Newly Reborn Monopoly

I agree with your analysis. When Best Buy has reported record sales just a month ago, it seems like an over reaction by a few analyst, actually one analyst (at bank of America) to suggest that PC/chip sales are slowing down.

I, however, disagree with your assessment of AMD. It's not to say that AMD is down or will go down further, but at $6 or so, it is clearly a bargain to be considered. Consider this detailed analysis by an investor who is buying into AMD now:

amdinvestor.com/2007/1.../

Whichever way things go, semiconductors have and always will be a cyclical business. Its up to astute investors to spot the bottom, and purchase so they sell at the top. With bargains like AMD, and high quality stocks like Intel, this is something to consider. Also, keep in mind a US recession does not necessarily lead to a global recession, much of the world is buying PCs and servers, and there is still much demand (China, India, Middle East).