TR Forums

The status of AMD seems to be a polarizing topic on these forums. So I thought this might be fun to see what people thought and their reasoning as to why.

I have a small amount of these, I bought them on the cheap so I'm not overly concerned with either way with what happens, I should have sold a couple years back when they were close to 10 a share and I would have done very well, but there never seems to happen. In fact I could sell them right now and be money ahead, but I'm personally holding, assuming that they can either turn it around at some point, or that they have enough in patents and licensing that any sort of buyout could produce a nice bump.

Just curious what others think since it seems like this company is hanging on by a thread.

Let's be very careful with this discussion as the SEC and State securities regulators do not take kindly to investment advice offered by unlicensed/unsupervised individuals.

The only stock I own is as part of my Fidelity-run 401(k) and a rolled-over IRA that have both been put into a fund. I think those guys are far more qualified than I am to deal with it.

Captain Ned wrote:

Let's be very careful with this discussion as the SEC and State securities regulators do not take kindly to investment advice offered by unlicensed/unsupervised individuals.

I would think as a hypothetical what would you do its not real investment advice, and no post has a single chance of changing my position it wouldn't be an issue, but if you disagree feel free to delete the thread, it won't bother me, just thought it was sort of a fun divisive topic.

I would think the only real problem would be any inside AMD'er posting about some secret sauce.

It partly depends on how much money it is in absolute terms and as a percentage of your portfolio. If it's significant and you're risk-averse with that much money, sell it...there are better companies to put it in imo. Two rules from Buffett and Munger "1. Don't lose money 2. No one ever lost money booking a gain." At least you're ahead, not many long-time AMD holders can say that.

Alternatively, looking at a 5 year chart it seems you bought in 2009 so your cost basis is among the lowest of the last 5 years, there was that stretch in 2009 and then a brief time in Nov 2012 where it was cheaper than it is now. That means you're better off than the vast majority of shareholders who are also still holding. If you don't mind letting it ride and are willing to take the risk go for it, if I owned AMD at such a low basis and wanted to hold I'd wait through the console releases. The future of AMD is very hard to see either way though because of lack of competitiveness and shifts in computing. If they can reinvent and come out of it solid you'll feel great, if not hopefully it's not much money risked.

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Would you be loosing more money if AMD stock tanked than you would lose at a Casino if you were "having fun"? If not, keep the stock and let it ride. If so, sell it. AMD is a gamble right now and should be treated as such.