Kap,
If you listen to Jerry carefully, he actually said "much more than 50% sold last month
Sorry about going back to the pigs statement, but now it is clear that it was a mistake. Not that Jerry said it, but the fact that AMD moved the prices way too slowly, thinking they (AMD) can somehow maintain their prices, while Intel was dropping prices fast.
I think the strenght of sales in Q1 totally misled AMD and they have blown the months of April and May, by standing still, while Intel was moving fast.
Sounds like Jerry unloaded much of the back to school sales few weeks early. If analysts have any clue we will see some downgrades tomorrow for both Intel and AMD. I anticipate a $200M AMD loss in Q3.
AMD loss in Q3 is possible, as well as Intel loss, and we may see some dips to the teens as the news is absorbed, it doesn't necessarily follow that both of the stocks will stay there. IMO, Q3 will either be the low of this recession, or may even represent a beginning of a turnaround, and Wall Street will soon start to look for the turnaround scenario and how to play it.
I don't think all of the bad news is out yet, and I guess you as a patient investor may get a great bargain within the next month or 2. I am not sure if I jumped in too quickly with my purchase right after the warning. If we dip to teens, i will probably double my position.
Joe |
