The Official AMD shares thread

[AtW]

I'm reminded of that RBS ABN Amro takeover moment in 2007 right before the crash.

In a moment of extraordinary exuberance AMD just dried up their cash reserves at a time of uncertainty with a purchase of a dent laden company.

Chip dealmaking ramps up with AMD’s $35bn takeover of Xilinx

From the article -

“Advanced Micro Devices has agreed to buy rival Californian chipmaker Xilinx in a $35bn all-stock transaction, taking the value of semiconductor dealmaking to more than $100bn in 2020 in a blockbuster year for the sector.”

[scooterscot]

So they've went all in on a overvalued growth stock (opposed to a value stock) at a time when the stock market is at a all time high?

Roulette anyone?

[AtW]

So they've went all in on a overvalued growth stock (opposed to a value stock) at a time when the stock market is at a all time high??

So AMD hadn’t “ dried up their cash reserves” as you’ve claimed above, yes or no?

[Paralytic]

So they've went all in on a overvalued growth stock (opposed to a value stock) at a time when the stock market is at a all time high?

Roulette anyone?

Wait, if you're saying that both companies are overvalued (which you are/have), then why does it matter if the stock market is at an all time high? If the market capitalisation for both was, for example, 40% lower that it was yesterday, it would still be roughly the same stock transaction.

Not sure you'll understand this, as its clear you don't even understand the difference between an all-stock-transaction buyout and a cash purchase.

[scooterscot]

Wait, if you're saying that both companies are overvalued (which you are/have), then why does it matter if the stock market is at an all time high? If they share capital for both was, for example, 40% lower, it would still be roughly the same stock transaction.

Not sure you'll understand this, as its clear you don't even understand the difference between an all-stock-transaction buyout and a cash purchase.

I think the point is missed.

A growth stock - investors / traders push up the stock price many multiples of current earnings because they believe future earnings will be massive. Today that makes the stock 'overvalued' because they're taking a bet. There's nothing wrong with that. However, look at a history of growth stock investments - the majority fail. The Dot.com bubble was a good example of this. People poured into growth stocks 'new paradigm' - and got rekt.


A value stock - here we have a stock that reflects current earnings. This is a good investment. Why? Because they are were placed to take advantage of future surges in demand whilst mitigating downside as their value is on par with earnings. This is Pearson at the moment.


The S&P 500, the Nasdaq - they are blown up because of growth stocks. Tesla among the most outrageous. I read one US report of recent believing 70% of all cars on US roads will be a Tesla in 10 years. The mania is full beam.

"Now back to your question, why does it matter the stock market is at a all time high?"

When a market is majority growth stock, nothing survives the downtrend, even if fundamentals are strong. In the Dot.com bubble saw Amazon crash 93%. Okay maybe you've got years ahead of you before retirement. Some were on the cusp and got destroyed.

Even if AMD are developing strong fundamentals right now, they are a grow stock - that's a fact. They level of rekt in a major correction will be a hoot.

[Old Greg]

So AMD hadn’t “ dried up their cash reserves” as you’ve claimed above, yes or no?

Don't expect pooper to sully himself with reality and facts.

[Paralytic]

I think the point is missed.<snip>

Yes, you definitely did. If both AMD and Xilinx are vastly overvalued (as you've basically said) then a stock purchase of the latter by the former means the actual stock level means nothing. Unless you're saying Xilinx is more overvalued than AMD?

As I said, I didn't think you'd understand this as you don't understand some even more basic stuff.

[scooterscot]

ATW ready for a AMD battering?

[AtW]

ATW ready for a AMD battering?

Can’t wait for Big Navi GPU presentation in a few hours - looks like first time in a very long time AMD will compete with Nvidia in top end cards - good margins!

[AtW]

ATW ready for a AMD battering?

“ Cowen reiterates an Outperform rating on AMD with a $100 price target and says Xilinx acquisition is great”