Paul:
Thank you for your question, it gave me reason to think about a subject on which I use more emotion than thought.
This company(AMD) has made $4.00/share in the past and could make double that in the near future. I don't think its going to happen.
I have followed this stock closely for two years, and on & off for 6.
Their products are superb, their manufacturing is ok. They havn't been able to transition a CPU properly from design to manufacturing since '92 or '93. The founder & CEO, Jerry Sanders, seems to have bet the ranch on the manufacturing of the 'K6' CPU, a GREAT product, but one he has been able to deliver at only sub-par rates(50%+ of die on wafer are defective).
If manufacturing can produce, the sky is literally the limit. INTC has 10X the shares outstanding@3X the price. INTC has not made a GREAT new chip since the PENTIUM, IMHO. I personally doubt that they will in the near future.
My approach to this company has been to swing for the fences. I bought some shares @ $18.00, followed them to $10.00, & bought more as they rose through $28.00. I ordered a computer with the CPU, and when the company couldn't deliver I sold the stock at prices up to $45.00, and bought LEAPS with ~10% of the profits.
The leaps cost lots of the profit. My recent buy of stock in the sector is IDTI. I wish AMD well & will continue to bet on it as a 'swing for the fence' stock.
I will be back in @ $15 as that is under core value, IMHO.
TGPTNDR |
