Avoid This Tech Stock

The following video is from Wednesday's MarketFoolery podcast in which host Chris Hill, along with analysts Austin Smith and Jason Moser, discuss the top business and investing stories.

Advanced Micro Devices has hired JPMorgan Chase to look at some possible options, one of which, it was rumored, included selling the company. But after AMD issued a statement denying that it was interested in selling, shares dropped this morning to a 21-year low. In this segment, the guys don't hold back in talking about what they truly think of this company, why the market wanted them to sell, and why some groups, such as Microsoft, may have reason to hope that AMD sticks around.

It may seem as if AMD is competing with Goliath in going up against Microsoft, but the titan of the computer chip has its own demons to slay. It's been a frustrating path for Microsoft investors, who've watched the company fail to capitalize on the incredible growth in mobile over the past decade. However, with the release of its own tablet, along with the widely anticipated Windows 8 operating system, the company is looking to make a splash in this booming market. In this brand-new premium report on Microsoft, our analyst explains that while the opportunity is huge, the challenges are many. He's also providing regular updates as key events occur, so make sure to claim a copy of this report now by clicking here.


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  • Report this Comment On November 15, 2012, at 8:16 AM, marks2012 wrote:

    AMD will put shorts and non buyers at prices $4 and under to shame.

    This company is backed by a company abroad aka Middle East that owns a large steak (meal) in it.

    The debt is long term, cash on hand over a billion and assets worth a fortune and for that bank to even talk with the company proves the value here!

    Just like IBM did in the 1980s by reorganizing itself, AMD, the smaller company is in a similar process that will succeed! A chance of a buyout is perhaps 30% but AMD doesn't want to be bought out because they can do well on their own. They are not desperate and the new CEO is getting down to business so in the next 36 months, look for this to have made new millionaires imo.

    Just based on my almost 31 years experience in the market but not saying to buy, sell or hold anything. I will average down like I did in 2009 and I will do fantastic long term as always.

    I tend to do the opposite of the fool and it works for me so if they start pumping the stock, I need to take another look. Right now, insiders are starting to buy in AMD and they buy for only one reason.

  • Report this Comment On November 15, 2012, at 8:22 AM, marks2012 wrote:

    I note that the people in the broadcast as smart and as nice as they seem to me were either not born or were in diapers when I first started investing so I will go with my experience and how psychology works in the markets but this is in no way disrespect for the nice men speaking in video and no, longs do not want to see AMD sold. Not this one because AMD is going to be $20 per share in 36 months.

    There is no going concern with AMD but to here these subjective sound bites and subjective articles, one might think it is just like in 2009 but AMD is now in a far better position than then because it KNOWS what it needs to do for the future to perform well as a great company and it will do so imo

    FB is the one that will be long gone in a few years imo.

    I give credit to these young men in the video for not actually bashing AMD. AMD will trade higher than CSCO and CSCO as great as it is has been stuck in a range for years.

    To buy AMD and expect it to be $10 in a few months is insane but to buy and expect $15 within 36 months is wise imo from my experience.

  • Report this Comment On November 15, 2012, at 4:11 PM, pcm1978 wrote:

    FYI, $1.86 is not a 21-year low for AMD stock (at least, adjusted for splits).

    AMD hit $1.82 Nov 21st, 2008, which was the last time I bought some myself.

    If it breaks that, you have to go back to Jul 13th, 1979 for $1.76.

    Nice segway into trying to sell that MSFT report, though :-)

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