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


To: neolib who wrote (220022)12/11/2006 4:10:45 PM
From: jspeedRead Replies (2) | Respond to of 275872
 
You can argue against value metrics all you want. There will still be a large group of investors that use them.

Bottom line is that there will always be a number of companies in any industry that are undervalued because sentiment is bad. Those companies "turn around" and value investors make money. Go read Warren Buffet if you have any doubts.

When AMD was growing rapidly in 2005, their value metrics where completely screwed up. Therefore, value investors wouldn't touch them with a ten foot pole. Now the value metrics are good, and value investors will keep the price from dropping too low.