AMD Stock Advice! Lets discuss the future of AMD

Chronic321

Member
May 31, 2002
137
0
0
Currently AMD's share value is $3.51. This is remarkable, and at first glance seems like the perfect oppurtunity. Since July I have waited to invest my life savings (Age 17 right now) into AMD and have seen AMD's stock fall from $9 to $3.51. With Hammer coming up we all know AMD is going to finally put Intel in the back burner, the world's first consumer 64bit chip with the ability to execute 32bit applications at twice the efficiency of the Athlon! However, will AMD hold on or will they go the route of the infamous 3dfx as they prepared their launch of the Rampage Chip. I hope to decide by Monday, invest everything or nothing. Thanks for the advice
 

PsychoAndy

Lifer
Dec 31, 2000
10,735
0
0
Originally posted by: Chronic321
Currently AMD's share value is $3.51. This is remarkable, and at first glance seems like the perfect oppurtunity. Since July I have waited to invest my life savings (Age 17 right now) into AMD and have seen AMD's stock fall from $9 to $3.51. With Hammer coming up we all know AMD is going to finally put Intel in the back burner, the world's first consumer 64bit chip with the ability to execute 32bit applications at twice the efficiency of the Athlon! However, will AMD hold on or will they go the route of the infamous 3dfx as they prepared their launch of the Rampage Chip. I hope to decide by Monday, invest everything or nothing. Thanks for the advice

Your first mistake isnt debating AMD vs Intel.

Its gambling "everything or nothing".

-PAB
 

no0b

Diamond Member
Jul 23, 2001
3,804
1
0
AMD's stock is going to go down more before it comes back up.
 

SWirth86

Golden Member
Aug 31, 2001
1,939
0
0
Invest nothing... It's too unstable now.

AMD could release the Hammer on time and have it crush everything else, or they could keep on paper releasing chips...

And remember, you can make money off a stock that goes down in value. Maybe this is the best way to go...
 

PsychoAndy

Lifer
Dec 31, 2000
10,735
0
0
Originally posted by: SWirth86
Invest nothing... It's too unstable now.

AMD could release the Hammer on time and have it crush everything else, or they could keep on paper releasing chips...

And remember, you can make money off a stock that goes down in value. Maybe this is the best way to go...

Um, lets see. Dosent selling short have an infinite loss probablity?

Right.......

-PAB
 

no0b

Diamond Member
Jul 23, 2001
3,804
1
0
if anything I would trade against amd's stock. ( I think thats the right terminology.)
 

SWirth86

Golden Member
Aug 31, 2001
1,939
0
0
Originally posted by: PsychoAndy
Originally posted by: SWirth86
Invest nothing... It's too unstable now.

AMD could release the Hammer on time and have it crush everything else, or they could keep on paper releasing chips...

And remember, you can make money off a stock that goes down in value. Maybe this is the best way to go...
Um, lets see. Dosent selling short have an infinite loss probablity?

Right.......

-PAB
Put Options?
 

PsychoAndy

Lifer
Dec 31, 2000
10,735
0
0
Originally posted by: SWirth86
Originally posted by: PsychoAndy
Originally posted by: SWirth86
Invest nothing... It's too unstable now.

AMD could release the Hammer on time and have it crush everything else, or they could keep on paper releasing chips...

And remember, you can make money off a stock that goes down in value. Maybe this is the best way to go...
Um, lets see. Dosent selling short have an infinite loss probablity?

Right.......

-PAB
Put Options?

Recheck the tread title.

-PAB
 

numark

Golden Member
Sep 17, 2002
1,005
0
0
If you're investing your life savings, don't make the mistake of investing in one company, regardless of whether you believe in that company or not. Enron looked like a good bet to many people, with all the fundamentals there. If you had invested everything the day before all the news came out, you would have lost everything.

I'm not saying AMD will go the way of Enron. In fact, I highly doubt it, they wouldn't be that stupid. However, my point is, don't put your future in the hands of one company. A safer bet is to put your money in mutual funds. You have the chance to get in on all sorts of companies, and don't have to sit and worry at night about every 1/8-th point drop in your stock.

Remember, having a good product does not a profit make.
 

darkshadow1

Senior member
Nov 2, 2000
460
0
0
diversify...please.

and put options? :p

Also, AMD's stock price is not too dependent on whether they can release certain products. Remember that they've been in the red for a little while now.
 

kherman

Golden Member
Jul 21, 2002
1,511
0
0
Originally posted by: Chronic321
Currently AMD's share value is $3.51. This is remarkable, and at first glance seems like the perfect oppurtunity. Since July I have waited to invest my life savings (Age 17 right now) into AMD and have seen AMD's stock fall from $9 to $3.51. With Hammer coming up we all know AMD is going to finally put Intel in the back burner, the world's first consumer 64bit chip with the ability to execute 32bit applications at twice the efficiency of the Athlon! However, will AMD hold on or will they go the route of the infamous 3dfx as they prepared their launch of the Rampage Chip. I hope to decide by Monday, invest everything or nothing. Thanks for the advice

INVEST ELSEWHERE! You have alot of time to make money. Do not ge tinto tech stocks right now. Go after "safe stocks". Food, stuff like that. Things peope need!!! I'd tell you my strategy, but I'd get flamed and then I'd get mad.... etc. Evertyone has their own investment strategy, you must find yours. PM me if you want advice.

 

austonia

Senior member
Nov 16, 1999
898
0
76
As an amatuer investor let me second the last guys remarks, invest in mutual funds NOT stocks, especially right now. TAKE THE ADVICE. I work for sprint so i have been watching FON and PCS for years. About 6 months ago I was sure, i was suuure PCS had bottomed out at around $8 and I sunk most of my savings in (only $3k, but still). it went up to $13 but i didn't sell of course, and now it's at $2 and not even worth selling. will it go back up? maybe, maybe not the market is just volatile now. If you buy stock, make sure to always use a STOP LIMIT!!!! there are plenty of guys out there who are better informed about the situation, including they guys who manage mutual funds. just because AMD has a hot product coming up DOES NOT mean the stock will rise. For instance... PCS just released 2.5G services called Vision. Know what happed? Stock went up a quarter one day and now it sits at even less than it was. Go with a fund or (insert Nicholson voice) "Roll the Dice and take your chances" :p
 

kherman

Golden Member
Jul 21, 2002
1,511
0
0
Originally posted by: optoman
AMD hasn't made a profit in how long? Ya, go invest in them.

I was just looking at AMD hisotory today. I have the data in front of me:
In earnings per share:
1990: -0.28
1991: 0.55
1992: 1.25
1993: 1.12
1994: 1.63
1995: 1.41
1996: -0.33
1997: -0.08
1998: -0.34
1999: -1.10
2000: 2.35
2001: 0.09

ESTIMATED:
2002: -0.95
2003: -0.25
2005-2007: 0.90


If anyone wants me to post any historical data, tonight is your chance! I can show any company actually!! INTC anyone???
 

SuperCyrix

Platinum Member
Mar 4, 2001
2,118
0
0
Or, you can invest long term 60% Intel and 40% AMD

unless they stop making computers, I don't see why Intel should be so low. And if AMD somehow kills Intel with their
64bit cpu, you got that cover too. Either way, at least one of these stock will soar.

If Hammer succeeds, AMD will at least be 3-10X what it's worth right now.
If Intel kills AMD or not, their stock price will eventually double. I mean, except AMD who can possibly dethrone Intel? Cyrix?
 

kherman

Golden Member
Jul 21, 2002
1,511
0
0
Originally posted by: austonia
As an amatuer investor let me second the last guys remarks, invest in mutual funds NOT stocks, especially right now. TAKE THE ADVICE. I work for sprint so i have been watching FON and PCS for years. About 6 months ago I was sure, i was suuure PCS had bottomed out at around $8 and I sunk most of my savings in (only $3k, but still). it went up to $13 but i didn't sell of course, and now it's at $2 and not even worth selling. will it go back up? maybe, maybe not the market is just volatile now. If you buy stock, make sure to always use a STOP LIMIT!!!! there are plenty of guys out there who are better informed about the situation, including they guys who manage mutual funds. just because AMD has a hot product coming up DOES NOT mean the stock will rise. For instance... PCS just released 2.5G services called Vision. Know what happed? Stock went up a quarter one day and now it sits at even less than it was. Go with a fund or (insert Nicholson voice) "Roll the Dice and take your chances" :p

I can here the fire trucks coming now, please do not flame.

IMHO: Do NOT invest in mutual funds. Mutual funds are not good investments. Let the flames start.... There are alot of good stocks out there, jsut at this sight, most people are into tech. Consider index tracking stocks also. I'm a long term (buy and hold) investor, so I'd get flamed for anything I say about investing. Right now is a great time to get into the market, just be careful of what you buy and don't get emotional about it.

 

kherman

Golden Member
Jul 21, 2002
1,511
0
0
Originally posted by: SuperCyrix
Or, you can invest long term 60% Intel and 40% AMD

unless they stop making computers, I don't see why Intel should be so low. And if AMD somehow kills Intel with their
64bit cpu, you got that cover too. Either way, at least one of these stock will soar.

If Hammer succeeds, AMD will at least be 3-10X what it's worth right now.
If Intel kills AMD or not, their stock price will eventually double. I mean, except AMD who can possibly dethrone Intel? Cyrix?

Since the original poster is new to investing, now is a good time to look at the concepts of emotion and speculation when it comes to investing.

 

Wingznut

Elite Member
Dec 28, 1999
16,968
2
0
Never invest in a company because you "like them", or like their products. Invest with your brain, not with your heart.

And let's say that Hammer turns out to be the best cpu ever made... That's absolutely no guarantee that you will make money off of their stocks.
 

Chadder007

Diamond Member
Oct 10, 1999
7,560
0
0
I think right now Ive got 2000 dollars in the market with it valued at 1400 right now. But im sticking with it for the long run. Id buy up some more GE ....Ill probably do that later and jump into some government bonds.
 

kherman

Golden Member
Jul 21, 2002
1,511
0
0
Originally posted by: Wingznut
Never invest in a company because you "like them", or like their products. Invest with your brain, not with your heart.

And let's say that Hammer turns out to be the best cpu ever made... That's absolutely no guarantee that you will make money off of their stocks.

Wingznut! Very good reminder. Very important lesson for a new investor!! Also a good thing for everyone to remember.

Interest in a company is not a reason to invest in a company. Liking a company is reason to research the company. upon becoming convinced of a bright future, then invest.
Forget the exact quote, but it's something like that.

Oh man, someone else on this forum doesn;t rely on speculation besides me!!!!! Wooohoooo!!!!!

 

kherman

Golden Member
Jul 21, 2002
1,511
0
0
Originally posted by: PsychoAndy
Originally posted by: SWirth86
Invest nothing... It's too unstable now.

AMD could release the Hammer on time and have it crush everything else, or they could keep on paper releasing chips...

And remember, you can make money off a stock that goes down in value. Maybe this is the best way to go...

Um, lets see. Dosent selling short have an infinite loss probablity?

Right.......

-PAB

Covering your shorts can be costly, but not infinite. Buying puts does seem safe though. You only risk the amount you paid for the puts. never done it, but am looking into it.

 

dfi

Golden Member
Apr 20, 2001
1,213
0
0
Go to your bookstore and look for a book called "The Boom and the Bubble" by Robert Brenner. Read the chapter on the bubble, and why stock prices drastically outpaced the profitability of manufacturing firms during the mid to late 90s. Read why stock prices have fallen, and continue on to read why stock prices still are inflated compared to profitability. It assumes a bit of knowledge on monetary policy, but it shouldn't be too hard to understand.

If you actually go and read all that (it's only like 20 pages for that section), and you still feel like investing in AMD, then do as you will. Personally, I wouldn't.

Take my advice with a lot of skepticism because I don't know jack squat. I've never invested in stocks, and my knowledge is very academic in nature.

My general feeling is that a lot of people get into equities to make a quick buck, which usually results in them losing money. If you want to invest in stocks for the long run, then diversity is the way to go. But if you really want to just take a gamble and try to make a quick buck, then I don't see the point. And is there really a point to diversifying your portfolio when you're out to make a quick buck and your investment capital is so small? I mean, you can split up $1000 to absorb shocks, but how much money will you have after service charge and taxes? (correct me if I'm wrong, but tax on stocks is NOT inflation adjusted, right?)

dfi
 

FeathersMcGraw

Diamond Member
Oct 17, 2001
4,041
1
0
Originally posted by: kherman
Do NOT invest in mutual funds. Mutual funds are not good investments. Let the flames start.... There are alot of good stocks out there, jsut at this sight, most people are into tech. Consider index tracking stocks also. I'm a long term (buy and hold) investor, so I'd get flamed for anything I say about investing. Right now is a great time to get into the market, just be careful of what you buy and don't get emotional about it.

It depends what you mean by good investment. I don't want to have to monitor the performance of my portfolio day-to-day (or even week-to-week), but I'm not looking for mounds of filthy lucre, either. If I can dump my money into passively-managed (and therefore low-fee) index tracking funds, then I can get market-level appreciation in the long-term with the effort that it takes to write a check on a monthly -- oh, wait, it's getting invested regularly by automatic withdrawal, so I don't even have to worry about that. I'd rather use the power of compounding by dividend and capital gains reinvestment, dollar-cost averaging, and decades of market forces to fuel my retirement. And in the meanwhile, I can go play my GameCube.

Mutual funds are just a means to invest in a broader diversification of stocks than would ordinarily be available to a small private investor. Yes, they will typically underperform a hand-picked stock portfolio, but how many miniature Warren Buffets are there out there who can reliably pick value and performance? How many people are willing to expend the effort to attain that level of investment performance?

To casually dismiss mutual funds in general as poor investments makes a number of assumptions about the goals and risk tolerances of investors.
 

Miramonti

Lifer
Aug 26, 2000
28,653
100
106
I just noticed the price today, around $3.20 at the close and I think that wall street is betting that Amd can't hold on til the tech depression rebounds. The don't have the cash reserves that Intel has and even if the Hammer does great it will be almost a year before its realized. It would be a sad day if they filed for bankruptcy protection.