Thoughts on AMD? It's tanking at the moment. It got my vote of no confidence a year ago, and it looks like it's proving to be accurate, but now that it's so cheap, I find it tempting...

 

dont buy it cuz its cheap... buy it if you think there is a strong upside.

which do u think will return 10% first? aapl or amd?

 

[QUOTE=trainwreck,Dec 5 2007, 03:21 PM] dont buy it cuz its cheap... buy it if you think there is a strong upside.

which do u think will return 10% first?

 

traditional business theory dictates that if 2 firms dominate an industry, the stronger firm will maintain a 3:1 ratio of marketshare. the cost to take the remaining 25% of marketshare from amd outweights the gains and thus they will forever be locked unless something dramatic happens. i believe amd has relized this and thats why they took over ati to gain additional revenue streams.

amd only needs to go up a dollar to earn you 10% however they have no good news...

aapl needs to go up ~18 to gain 10% however they are constantly announcing inovative products at mac world and have some of the industry's best management and engineers.

warren buffet rather invest in a good industry with mediocre management then a bad industry with the best management. aapl is in a good industry with good management. amd is...

 

AMD is garbage. It's not a good company that is unjustly sold down, it's a crappy company that was sold down because it is. The problem with AMD is you can't trade it. It's not going broke so you can't short it and it has no hope of making any real dent in the market so you can't buy it.

Intel will give it just enough oxygen to keep it alive at its current size. If AMD were to go under Intel would have a HUGE anti-trust problem on its hands. AMD is the only thing keeping the DOJ at bay.

 

[QUOTE=trainwreck,Dec 5 2007, 04:24 PM] traditional business theory dictates that if 2 firms dominate an industry, the stronger firm will maintain a 3:1 ratio of marketshare.

 

Ha, funny, I just saw the thread on AAPL. I thought it was a $90's stock too, and then it goes and blows that away. Oh well.

 

Welcome to last year.

 

My target for AMD is about $5 per share. At that point I will look at it for a buying opportunity.

 

Yep, that's about when I made my estimation. I wasn't looking at it nearly as thoroughly as you guys were, though.