Dear Tim:
I am a "newbie" in directly purchasing stocks. AMD was my first, second, and now fifth direct stock purchases. In my 401K accounts, I have invested in 5 different stock mutual funds mostly value and / or growth. I still keep a significant amount in cash (although not as much as I used to). All I can say is "WHAT A GREAT FIRST PUIRCHASE" AMD was. I now have 220 shares purchased at various times for a total with commissions of $10,445. I also picked up 19 shares of MIPS two months ago (now its up more in percentage terms than my last two purchases of AMD) and 64 shares of XICO (still under a little due to NAZ sell-off but only because of commission and only three weeks). AMD thus comprises only around 40% of my overall holdings but, at the rate it was and will be rising, it will shorty dominate my holdings.
I concur that it is still one of the most excellent buys at this price. IMHO, it will make somewhere between $6 and $12 per share even post taxes this year. Next year, it should make twice those numbers. Thus, depending on PE's and future roadmaps, it could be anywhere from $240 to (dare I say it?) $1200 per share. At the lower end, it will be good, and at the higher still somewhat conservative number, it will still be a great stock. Of course, if it reaches beyond the higher number, I will be VERY happy.
In any case, I will always be open to sell, if it becomes highly overvalued or they do something "Really Incredibly Stupid to my Knowledge".
Pete |
