"Step One: Restructure to reduce operating cost and improve efficiency. Two, execute our 2013 product road map to accelerate our business and return for profitability. And three, ultimately transform AMD to take advantage of high growth opportunities..." -- Rory Read, taken from the Seeking Alpha earnings transcript.
With Advanced Micro Device's (AMD) stock on a recent rally, largely due to a design win in Sony's (SNE) PS4, and an unofficial win in Microsoft's (MSFT) next generation Xbox, it is a good time to visit potential negative catalysts that could cause a downturn in AMD's uptrend, as well as delving into AMD's progress of returning to profitability in the second half of the year.
Potential Negative Catalysts
Microsoft will be unveiling the new Xbox on May 21st, 10am PDT. I recommend not missing the event if you have a long position in AMD. The event will be broadcast on Spike TV and Xbox Live. If it turns out the Xbox does not use a solution from AMD, I expect to see a sharp correction in AMD's stock price, though I do not feel this will be the case. "A large part of the momentum this year will come from our game console wins" and "...Microsoft announced last year that the Xbox 360 is now used more for watching videos and listening to music than it is for playing games", both taken from Rory Read during the same earnings call linked to above, which seem to imply the Xbox console win. An earlier article on Bloomberg also supports this rumor. Stock holders are expecting the announcement to confirm this, so news to the contrary could cause a sell off.
Best Diversified Bank Stocks To Invest In 2014: Ainsworth Game Technology Ltd(AGI.AX)
Ainsworth Game Technology Limited, together with its subsidiaries, engages in the design, development, production, sale, and servicing of gaming machines and other related equipment, and services. It designs and manufactures the A560, Ambassador, and Celebrity range of gaming products along with entertaining stand alone progressives and linked games. The company offers its products and services in Australia, North America, South America, New Zealand, Europe, and Asia. Ainsworth Game Technology Limited was founded in 1995 and is headquartered in Newington, Australia.
Best Diversified Bank Stocks To Invest In 2014: Macquarie Radio Network Ltd(MRN.AX)
Macquarie Radio Network Limited engages in the radio and associated media activities in Australia. The company offers adult radio audience programs. It also owns a public relations and marketing communications agency, Map and Page; and media Websites, such as 2GB.com, 2CH.com, and rugbyleaguelive. The company is headquartered in Pyrmont, Australia. Macquarie Radio Network Limited is a subsidiary of John Singleton Promotions Pty Limited.
Best Rising Stocks To Own Right Now: Petrofac(PFC.L)
Petrofac Limited, together with its subsidiaries, provides facilities solutions to the oil and gas production and processing industries. The company operates in four segments: Engineering and Construction, Offshore Engineering and Operations, Energy Developments, and Engineering, Training Services, and Production Solutions segments. The Engineering and Construction segment provides engineering, procurement, and construction project execution services to the onshore oil and gas industries. The Offshore Engineering and Operations segment offers engineering and construction services at all stages of greenfield and brownfield offshore projects, as well as operations management services to the offshore oil and gas industries. The Energy Developments segment co-invests with partners in oil and gas production, processing, and transportation of assets. The Engineering, Training Services, and Production Solutions segment engages in the provision of early stage engineering services, such as conceptual FEED studies, oil and gas related technical competency training and consultancy services, and production improvement services under value aligned commercial structures. The company provides its services primarily in Algeria, the United Arab Emirates, the United Kingdom, Kuwait, Syria, and Saudi Arabia. Petrofac Limited was founded in 1981 and is based in London, the United Kingdom.
No comments:
Post a Comment