Ouch.. AMD down 1.28 (7.13%) so far today..

[brxndxn]

Why oh why didn't I sell? I was all ready to sell right after earnings announced in aftermarket trading. I could've sold it at 17.50.

I swear.. it would have been stupid to sell at the time. Nobody sells after announcement of record earnings, new marketshare, future expansion, etc etc.. AMD just announced it's all time highest revenue quarter and a profit that beat analyst predictions across the board. So, naturally, it drops 7.13% by 1pm the next day. ARGH. Stocks piss me off.

Somehow, I bet if Jerry Sanders was still CEO of AMD, AMD's stock price would be a lot higher. Hecter Ruiz compared to Jery Sanders sounds like a George Bush compared to Bill Clinton. (I voted for Bush.. but his speeches are a train wreck while Clinton was smooooooooooooth.)

 

[tikwanleap]

Alot of times, stocks go down after very good news. Don't know why, but it happens.

 

[Savij]

Originally posted by: tikwanleap
Alot of times, stocks go down after very good news. Don't know why, but it happens.

People taking the profit and running.

 

[Rudee]

Looks as though you don't understand how the market works, thus maybe you shouldn't be invested in it in the first place

 

[tikwanleap]

Originally posted by: Rudee
Looks as though you don't understand how the market works, thus maybe you shouldn't be invested in it in the first place

Pretty harsh there .

I just consider the money lost while learning how to invest in the stock market like tuition for education.

Everyone is a beginner at one point.

 

[dnuggett]

Originally posted by: Rudee
Looks as though you don't understand how the market works, thus maybe you shouldn't be invested in it in the first place

Not everyone understands how it works. That doesn't mean investing is a bad idea for them. There are many things you do/use throughout the day with absolutely no clue how they work.

 

[marquee]

Originally posted by: brxndxn
Why oh why didn't I sell? I was all ready to sell right after earnings announced in aftermarket trading. I could've sold it at 17.50.

I swear.. it would have been stupid to sell at the time. Nobody sells after announcement of record earnings, new marketshare, future expansion, etc etc.. AMD just announced it's all time highest revenue quarter and a profit that beat analyst predictions across the board. So, naturally, it drops 7.13% by 1pm the next day. ARGH. Stocks piss me off.

Somehow, I bet if Jerry Sanders was still CEO of AMD, AMD's stock price would be a lot higher. Hecter Ruiz compared to Jery Sanders sounds like a George Bush compared to Bill Clinton. (I voted for Bush.. but his speeches are a train wreck while Clinton was smooooooooooooth.)

AMD's stock is considered over valued by most analysts, plus they've got a ton of debt. Couple that with news of possible interest rate increases, thats probably enough to overcome earnings reports and drive the stock down.

 

[SarcasticDwarf]

I'm waiting until it goes back under 13 to put anything else in.

 

[brxndxn]

Originally posted by: Rudee
Looks as though you don't understand how the market works, thus maybe you shouldn't be invested in it in the first place

I blow my money; you blow yours.

 

[StageLeft]

So much for ATOT's newb traders who sink their life savings into AMD and NVDA :Q

I just consider the money lost while learning how to invest in the stock market like tuition for education.

That analogy would work if people actually got smarter and better. As I've said in the past a person will get more money, and waste less time, dumping their investment cash into an index fund than trying to play the market on individual stocks themselves. Otherwise making money is not a priority; playing is.

 

[Transition]

Originally posted by: Rudee
Looks as though you don't understand how the market works, thus maybe you shouldn't be invested in it in the first place

If you understand the market dynamics of the mentioned price-drop please explain. I'd be interested to know what factors caused the decrease.

And Rudee - not too sure if you do much investing but it's not feasible to be able to intricately understand all the dynamics of the market. If we could do that, we'd all be rich.

 

[Rudee]

Originally posted by: Transition

Originally posted by: Rudee
Looks as though you don't understand how the market works, thus maybe you shouldn't be invested in it in the first place

If you understand the market dynamics of the mentioned price-drop please explain. I'd be interested to know what factors caused the decrease.

And Rudee - not too sure if you do much investing but it's not feasible to be able to intricately understand all the dynamics of the market. If we could do that, we'd all be rich.

I've been investing in the market for over a decade now. Many methods: buy and hold, swing trades, etc. I've done very well. I'm not saying a person has to know everything, but before you invest a dime into the market, you need an exit strategy. i.e. you must know ahead of time at what stage you're willing to exit. Stocks will buzzsaw and if you panic, you will often make a bad decision. Know what you want from your investment before you even enter the market.

Many factors cause decreasing stock prices. Most often than not it's unfavorable news about not just the specific company in which your invested, but the market sector. Too much to list here, but all I'm saying is that I've seen too many people lose too much money over bad planning. You just need a plan, that's all.

As far as AMD goes, I haven't done any research on the stock, but given what you've told me about their recent gains and decrease in stock price, it appears that people might be selling to take profits. When you have more sellers than buyers the stock price will decline. Some people will also "short sell" the stock selling borrowed stock at higher prices and buying it back at a lower price. This is what happens when a stock starts to drop then rebounds again. Shorters are "covering" themselves.

 

[Hammer]

Originally posted by: tikwanleap
Alot of times, stocks go down after very good news. Don't know why, but it happens.

they didn't make their whisper numbers

 

[SuperMachoMan]

Originally posted by: brxndxn
Why oh why didn't I sell? I was all ready to sell right after earnings announced in aftermarket trading. I could've sold it at 17.50.

I swear.. it would have been stupid to sell at the time. Nobody sells after announcement of record earnings, new marketshare, future expansion, etc etc.. AMD just announced it's all time highest revenue quarter and a profit that beat analyst predictions across the board. So, naturally, it drops 7.13% by 1pm the next day. ARGH. Stocks piss me off.

Somehow, I bet if Jerry Sanders was still CEO of AMD, AMD's stock price would be a lot higher. Hecter Ruiz compared to Jery Sanders sounds like a George Bush compared to Bill Clinton. (I voted for Bush.. but his speeches are a train wreck while Clinton was smooooooooooooth.)

What makes you say that? From what I have seen, the company produced blowout earnings this quarter and has executed a remarkable turnaround over the past year. The drop in price has more to do with valuation concerns than with company performance. It sports a P/E ratio of 31. How high a price do you think is justified?

 

[SuperMachoMan]

Originally posted by: Skoorb
So much for ATOT's newb traders who sink their life savings into AMD and NVDA :Q

I just consider the money lost while learning how to invest in the stock market like tuition for education.

That analogy would work if people actually got smarter and better. As I've said in the past a person will get more money, and waste less time, dumping their investment cash into an index fund than trying to play the market on individual stocks themselves. Otherwise making money is not a priority; playing is.

Not disagreeing with your premise, but AMD is up over fivefold over the past year or so while the S&P is up around 40%.

 

[StageLeft]

Originally posted by: SuperMachoMan

Originally posted by: Skoorb
So much for ATOT's newb traders who sink their life savings into AMD and NVDA :Q

I just consider the money lost while learning how to invest in the stock market like tuition for education.

That analogy would work if people actually got smarter and better. As I've said in the past a person will get more money, and waste less time, dumping their investment cash into an index fund than trying to play the market on individual stocks themselves. Otherwise making money is not a priority; playing is.

Not disagreeing with your premise, but AMD is up over fivefold over the past year or so while the S&P is up around 40%.

And now it's down 7% in a day, whereas the S&P isn't. It's a bad idea to base one's purchasing of stock simply on that stock's past history. It's a simple fact that the average professional (notice I said pro - not amateur) investor can't even match the market, let alone beat it.

 

[marquee]

Originally posted by: Rudee

Originally posted by: Transition

Originally posted by: Rudee
Looks as though you don't understand how the market works, thus maybe you shouldn't be invested in it in the first place

If you understand the market dynamics of the mentioned price-drop please explain. I'd be interested to know what factors caused the decrease.

And Rudee - not too sure if you do much investing but it's not feasible to be able to intricately understand all the dynamics of the market. If we could do that, we'd all be rich.

I've been investing in the market for over a decade now. Many methods: buy and hold, swing trades, etc. I've done very well. I'm not saying a person has to know everything, but before you invest a dime into the market, you need an exit strategy. i.e. you must know ahead of time at what stage you're willing to exit. Stocks will buzzsaw and if you panic, you will often make a bad decision. Know what you want from your investment before you even enter the market.

Many factors cause decreasing stock prices. Most often than not it's unfavorable news about not just the specific company in which your invested, but the market sector. Too much to list here, but all I'm saying is that I've seen too many people lose too much money over bad planning. You just need a plan, that's all.

As far as AMD goes, I haven't done any research on the stock, but given what you've told me about their recent gains and decrease in stock price, it appears that people might be selling to take profits. When you have more sellers than buyers the stock price will decline. Some people will also "short sell" the stock selling borrowed stock at higher prices and buying it back at a lower price. This is what happens when a stock starts to drop then rebounds again. Shorters are "covering" themselves.

http://www.thestreet.com/_yahoo/tech/ronnaabramson/10153910.html

if you're really interested in the stock, read the link above. it gives good reasons why AMDs stock isnt a great buy right now. the article is 3 pages by the way, on the third page, it probably gives the best reason... simply put, AMD is warning aggregate sales coming in flat next quarter, or even decline

 

[SuperMachoMan]

Originally posted by: Transition

Originally posted by: Rudee
Looks as though you don't understand how the market works, thus maybe you shouldn't be invested in it in the first place

If you understand the market dynamics of the mentioned price-drop please explain. I'd be interested to know what factors caused the decrease.

And Rudee - not too sure if you do much investing but it's not feasible to be able to intricately understand all the dynamics of the market. If we could do that, we'd all be rich.

The flash memory industry (from which AMD receives a significant portion of their revenues) is taking a huge hit right now over concerns of declining profit margins despite very strong revenue growth. I am not saying this is logical nor predictable (IMO it is not over the short term) but that is what is going on right now.

 

[SuperMachoMan]

Originally posted by: Skoorb

Originally posted by: SuperMachoMan

Originally posted by: Skoorb
So much for ATOT's newb traders who sink their life savings into AMD and NVDA :Q

I just consider the money lost while learning how to invest in the stock market like tuition for education.

That analogy would work if people actually got smarter and better. As I've said in the past a person will get more money, and waste less time, dumping their investment cash into an index fund than trying to play the market on individual stocks themselves. Otherwise making money is not a priority; playing is.

Not disagreeing with your premise, but AMD is up over fivefold over the past year or so while the S&P is up around 40%.

And now it's down 7% in a day, whereas the S&P isn't. It's a bad idea to base one's purchasing of stock simply on that stock's past history. It's a simple fact that the average professional (notice I said pro - not amateur) investor can't even match the market, let alone beat it.

I am aware of that. Just pointing out that AMD and NVDA were poor examples to illustrate this point.

 

[StageLeft]

Originally posted by: SuperMachoMan

Originally posted by: Skoorb

Originally posted by: SuperMachoMan

Originally posted by: Skoorb
So much for ATOT's newb traders who sink their life savings into AMD and NVDA :Q

I just consider the money lost while learning how to invest in the stock market like tuition for education.

That analogy would work if people actually got smarter and better. As I've said in the past a person will get more money, and waste less time, dumping their investment cash into an index fund than trying to play the market on individual stocks themselves. Otherwise making money is not a priority; playing is.

Not disagreeing with your premise, but AMD is up over fivefold over the past year or so while the S&P is up around 40%.

And now it's down 7% in a day, whereas the S&P isn't. It's a bad idea to base one's purchasing of stock simply on that stock's past history. It's a simple fact that the average professional (notice I said pro - not amateur) investor can't even match the market, let alone beat it.

I am aware of that. Just pointing out that AMD and NVDA were poor examples to illustrate this point.

No they weren't, because the fact is it doesn't matter what stock I illustrate it with. Just because AMD has grown 5 million percent in the last 2 days doesn't mean that it's a good buy today. Nobody can see the future, and a stock's past performance is a terribly bad indicator of its future performance.

 

[Rudee]

You have to understand that the price of a certain stock is not a reflection of a company's current worth, rather, it's a reflection (estimate) on it's future worth. And because nobody can predict the future, these future estimates can change drastically with every bit of good or bad news, or even perceptions.

 

[dnuggett]

No they weren't, because the fact is it doesn't matter what stock I illustrate it with. Just because AMD has grown 5 million percent in the last 2 days doesn't mean that it's a good buy today. Nobody can see the future, and a stock's past performance is a terribly bad indicator of its future performance

Apparently Rudee would disagree with that as he has done swing trades and by his own accord has done very well.

 

[SuperMachoMan]

Originally posted by: Skoorb

Originally posted by: SuperMachoMan

Originally posted by: Skoorb
No they weren't, because the fact is it doesn't matter what stock I illustrate it with. Just because AMD has grown 5 million percent in the last 2 days doesn't mean that it's a good buy today. Nobody can see the future, and a stock's past performance is a terribly bad indicator of its future performance.

I am not advocating buying AMD stock nor any other stock based on past performance. I am stating that AMD shareholders such as the OP have been trouncing the market over the past year. Bringing up efficient market theory after one down day therefore holds very little weight.

 

[MikePanic]

id hold till after the new release of windowz... to see how the chips work w/ the new o/s

 

[Rudee]

Originally posted by: dnuggett

No they weren't, because the fact is it doesn't matter what stock I illustrate it with. Just because AMD has grown 5 million percent in the last 2 days doesn't mean that it's a good buy today. Nobody can see the future, and a stock's past performance is a terribly bad indicator of its future performance

Apparently Rudee would disagree with that as he has done swing trades and by his own accord has done very well.

I swing trade on simple market indicators like volume. Although I no longer do this kind of trading the facts are still the facts: Nobody can predict the future