Stock Mastery Of The Day

From The Stock Masters

The world’s No. 2 microprocessor Advanced Micro Devices Inc. (AMD) is now trading 50 cents away from its 52-week low an indication that Intel (INTC) is winning the battle, at least this round. But just like Rocky lost to Apollo, the fight is not over, and it’s going to get heated this year. Needham analyst Y. Edwin Mok stated AMD has started “frantic price cuts” which will impact Intel’s pricing. He went on to say: “we would avoid both names here, as we believe lower prices and higher capital spending may continue to limit margins.” He also said AMD is offering “very competitive pricing” to Dell (DELL) in order to win more market share. It’s no secret that Wall Street hates AMD right now, they received 4 downgrades on Jan 12th and got an additional 4 downgrades on Jan 24th. Before you go dismissing AMD, let me remind you fellow Masters they pulled in $1.7B in revenue for Q4 06, yes they did have a -$573M in net revenue. But AMD is not just some Mom and Pop No. 2 player, these guys are bigger than life. The Masters do not like their negative net revenue, that’s never a good sign, but the fact of the matter here is – this is AMD we’re talking about. Not some crap stock about to be traded OTC or having a going-out-of-business "everything must go" sale. What’s happening now with AMD reminds us of what happened last summer with AMD hit $15 a share, then ran up to $25 a few months later. Granted more people hate AMD now then ever before, but keep an eye on them, everyone loves a comeback kid. Enjoy your time Intel at the No. 1 spot, just know that AMD is drinking raw eggs and running stairs. You better believe AMD is coming for you Intel, and when Intel is knocked down and in the corner later this year, Duke will be telling them: Well then you should of had ’em! Now don’t let up on this man. This man is dangerous. This man is DANGEROUS!

http://www.thestockmasters.com/index.asp