You compare the stock price to the market capitalization.
How do I put this nicely? You don't know sh|t about stocks. Do yourself a favor and put your money in the bank.
AMD warned
Just before today?s close, the Dow Jones Industrial Average was down about 60 points. It had been down as much as 86 points in the early afternoon. The Nasdaq Composite lost 17 points, and the Standard & Poor?s 500 Index was off 7 points.
The market struggled to regain its footing, which was lost after AMD surprised investors last night with an earnings warning. The chip maker said its fourth-quarter operating profit will be significantly less than the $68 million it reported in the third quarter. The culprit: AMD?s flash-memory chip business. AMD said that business will likely show a loss for the quarter and sales will sag. Earlier, AMD had predicted flash chips sales would be ?flat to up.?
AMD shares tumble more than 25%. Intel shares have also fallen nearly 1.6%. The Philadelphia Semiconductor Index ($SOX.X) lost 2.3%.
The reason that AMD?s flash chip business is losing money is Intel, which reports fourth-quarter earnings after today?s close. Intel and AMD have developed what is an increasingly ferocious rivalry as they try to capture more business among communications companies. That rivalry began to turn in AMD's favor during the past six months as the company picked up market share from Intel. Intel fought back with heavy price discounting in the fourth quarter.
Just before today?s close, the Dow Jones Industrial Average was down about 60 points. It had been down as much as 86 points in the early afternoon. The Nasdaq Composite lost 17 points, and the Standard & Poor?s 500 Index was off 7 points.
The market struggled to regain its footing, which was lost after AMD surprised investors last night with an earnings warning. The chip maker said its fourth-quarter operating profit will be significantly less than the $68 million it reported in the third quarter. The culprit: AMD?s flash-memory chip business. AMD said that business will likely show a loss for the quarter and sales will sag. Earlier, AMD had predicted flash chips sales would be ?flat to up.?
AMD shares tumble more than 25%. Intel shares have also fallen nearly 1.6%. The Philadelphia Semiconductor Index ($SOX.X) lost 2.3%.
The reason that AMD?s flash chip business is losing money is Intel, which reports fourth-quarter earnings after today?s close. Intel and AMD have developed what is an increasingly ferocious rivalry as they try to capture more business among communications companies. That rivalry began to turn in AMD's favor during the past six months as the company picked up market share from Intel. Intel fought back with heavy price discounting in the fourth quarter.
Thought it was a good time to re-buy the stocks I sold @$22 early december.
Bought 660 shares @ $25. Hope the recovery will be quick. I Usually sell the stock before x mass then re-buy after the new year.
I don think AMD is going anywhere (collapsing) anytime soon.
Peace
Bought 660 shares @ $25. Hope the recovery will be quick. I Usually sell the stock before x mass then re-buy after the new year.
I don think AMD is going anywhere (collapsing) anytime soon.
Peace
Originally posted by: MisterCornell
You compare the stock price to the market capitalization.
How do I put this nicely? You don't know sh|t about stocks. Do yourself a favor and put your money in the bank.
i can compare whatever i want. If you don't have anything nice to say, then don't.
It's just a comparison about market cap, i'm not telling you to buy or sell using this comparison
ummm MisterCornell... market Cap is a function of stock price and the total number of shares outstanding. So there is at least a relation.
True it's not a ratio or comparison like price to earnings or price to book, but stilll market cap bears looking at. Small caps often languish even with low P/Es. And they have some more trouble getting financing, but they can rise very quickly. Market Cap is something I would consider before investing.
True it's not a ratio or comparison like price to earnings or price to book, but stilll market cap bears looking at. Small caps often languish even with low P/Es. And they have some more trouble getting financing, but they can rise very quickly. Market Cap is something I would consider before investing.
Yeah, no sh|t. I've been to college and taken the finance/economics classes.
The OP's logic seems to be, stock A has a lower market capitalization than stock B, and since both of them are in the same industry, stock A has room to catch up with B, therefore, if I buy A, it's stock price will rise. That is some really hairbrained logic. Stocks don't go around "catching up" with other stocks in the same industry. If that was true, all businesses in the same industry would have the same market capitalization, because people would anticipate the small cap companies "catching up" with the big caps in the long term, so they would buy all the small caps and dump the big caps until they were worth the same.
All I'm saying is that I think you need to delve into AMD and Intel's financial statements to see why each is valued the way they are. AMD has a P/E of 35, and a fordward P/E of 20 (which is better, but the company has a history of volatility, so it may increase again). It's not exactly a strong value stock pick.
Oooohhhhhh, you've been to college... Why didn't you just say so in the first place. :roll:
Now how would you explain the crappy arrogant attitude?
Good thing you clarified MrCornell, because I went to college AND graduate school so big words like sh|t aren't required for me to understand something.
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