Molly, in response to your question on AMD, yes its true that occassionally when a stock is downgraded, it trades lower for a few days. But sometimes it is just a one day affect - just like when a stock is upgraded.
And like many here, I am very skeptical about analyst recommendations - in a lot of cases they will upgrade a stock to sell into it, and downgrade a stock to buy on the dips. Just watch the action on L2 after some upgrades / downgrades come out, and which MM is doing a lot of the buying / selling.
Does it happen all the time, no, but it does happen enough.
As far as the AMD downgrade - its not an issue with me. Anytime I have a chance to get a good stock like this at a discounted price, I will do so. As Rande noted in this post:
Message 14375120
AMD has won market acceptance with its products, and that is falling thru to the bottom line. AMD currently trades at a P/E of about 28 - which is less than the S&P mean of 35, and far less than INTC and other techs. To me, anywhere under 30 is a great place to establish a long term and/or trading position in AMD. If it dips further from here, I will add to my position, but I am a big believer in buying when others don't want the stock, and selling when they do.
And lastly, from a technical standpoint:
bigcharts.com
my read is AMD has support in the 27/28 range - with very strong support at about 26 1/2 or so - so getting in here at mid 28's is a very good entry point IMO
Hope this helps |
