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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?


To: alias_doodaddy64 who wrote (210930)9/14/2006 8:24:47 PM
From: inexRead Replies (3) | Respond to of 275872
 
AD64,

First, let me say that I feel for you after having been forced to sell some AMD at the low. In 2002, I was almost forced to sell my entire holdings at about $3.50/share.

Second, hopefully, you learned something... AMD is not a good stock to leverage unless you have the ability to take a deep breath and hang on tight (aka have some extra cash floating around). The volatility of the stock is what makes it an interesting play for some who chose to invest aggressively.

I can't shake the feeling that the slide was simply about the fear of a price war.

This fear is very real and IMO could rear its ugly head again Q1 or Q2 of 2007. By then, Conroe will be manufactured in volumes large enough to make a difference and we'll have to see how that affects pricing.

Add to this the outright lying Intel did about Conroe's abilities and their ability to ramp up production,

I'm not aware of anything that I would classify as anything more than "hyping", which, is certainly what one would expect Intel to do with a product that they could finally hype... Business as usual.

The one thing that I learned when I came seriously close to losing my entire investment was to temper my enthusiasm for AMD with the realities of the environment in which AMD operates. Rather than complain about manipulation and insider trading, I've learned to factor them into my decision making. Rather than scoff at price war rumors that I feel are FUD, I take some stock off the table and see what materializes.

Most investors understand that there are some very powerful players out there who are capable of doing things that you and I cannot do. Smart investors learn how to anticipate the markets reaction to FUD and modify their investments accordingly. I would not put myself in this category yet, but, I'm a work in progress...

Scott



To: alias_doodaddy64 who wrote (210930)9/15/2006 11:57:57 AM
From: plantlifeRead Replies (1) | Respond to of 275872
 
Unfortunately, you got caught in a (momentum) initiated hurricane. It went too far, there is no doubt about that, and the reversal is a result of the extent of unjustified selling pressure, (panic).

I sold a few times, bought and sold again, etc. during that time. It was a wild ride, unpredictable to even the best TA people, (audi comes to mind), who bought and sold as well.

You got into a crap shoot, but didn't roll the dice. I did roll a couple times, not on AMD's prospects, but on my belief that the manipulators would orchestrate the sell off, and I could buy back at a cheaper price when the smoke cleared.

It worked, but not as well as it did for the good TA guys.