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CHIP FIRM AMD's stock showed a further burst of speed on the NYSE floor yesterday, rising by $1.55 to close at $41.40.

In contrast, the Intel (tick: INTC) share price stayed more or less level and closed on the NASDAQ exchange at $21.65.

The performance of AMD stock has confounded Wall Street Analysts and it's mildly surprising to us.

http://www.theinquirer.net/?article=29377
 

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Err, it's been like that for a while now... like at the end of nov. was the take over. But soon...intel shares will rule again..
 

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Originally Posted by Xeijin

A severe blow dealt to the fanboys me thinks.

Are you under the impression that share price means something?
 

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It means AMD doing well. A company's primary responsibility is to its shareholders. Happy shareholders means a company can focus on its product and it will have all the money it needs.
 

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Originally Posted by nizfiz

It means AMD doing well. A company's primary responsibility is to its shareholders. Happy shareholders means a company can focus on its product and it will have all the money it needs.

Exactly, it will be easy for the company to gain investment which in the business world is everything in terms of becoming more sucessful. As AMD will be able to invest more in R&D if it wants to, to try and take furthur market share from intel.
 

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Originally Posted by nizfiz

It means AMD doing well. A company's primary responsibility is to its shareholders. Happy shareholders means a company can focus on its product and it will have all the money it needs.

Share price doesn't show company performance unless you look at all aspects of shareholder history. A 2:1 reverse stock split would drive the price up two fold, would that mean the company is suddenly in a better financial situation? Absolutely not. Comparing the per share price of Intel versus AMD means absolutely nothing. When analyzing stocks, you should always convert to P/E (share price/equity). Otherwise, it's meaningless and you're comparing apples to oranges.
 

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Would you do that little calculation for us to see who is doing better?
 
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Originally Posted by Commander Kool

You're so smart.

Im not, but I think I understand what you mean.

Here's an example to make it easier to understand....

If there were two lamp stores of equal value, but Company A had 100 shares while Company B had 200 shares of total stock.....

If Company A's stock was selling for $50 per share and Company B's stock was selling for $25 per share.....which is a better value?

Answer: They're equal. Now if you were to compare $50 versus $25 share prices, see how that is meaningless and tells you nothing?

Edit: Sure Nizfix, give me a few mins to look up the info I need. I'll edit or repost in a few.
 

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Originally Posted by nizfiz

Would you do that little calculation for us to see who is doing better?

Sure, as of today, here are the current P/E values for AMD and INTC...

AMD P/E = 103.50

INTC P/E = 15.50

In case you're not sure how to read these, it shows that AMD is "expensive" right now when compared to Intel. That can be interpretted in a few different ways. You could argue that Intel is a better buy or you could also argue that AMD stock, while expensive, has the higher upside potential and demand is high for it right now. That would explain the high stock price.

Edit: To make sure anyone isn't misled, these figures are for evaluating stock price, not for company health. If you want to look at the health of a company, you want to look at earnings per share. Here's the latest....

AMD .40
Intc 1.40
 
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interesting, thx (rep for you)
It seems to me when stock price is high, companies are usually doing pretty well. Anyway, I think we'd all agree AMD is catching up to intel and surpassing it some areas.
 

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Originally Posted by nizfiz

interesting, thx (rep for you)
It seems to me when stock price is high, companies are usually doing pretty well. Anyway, I think we'd all agree AMD is catching up to intel and surpassing it some areas.

If you ever want to amuse yourself, look at the share price of Bershire Hathaway. (Symbols are BRK.A and BRK.B) They never split and are geared towards higher dollar investors. They don't split the stock because they don't want a share to be affordable to the average Joe. As of today, 1 share costs nearly $90,000. Multiply that by how many shares Warren Buffet owns and you can see how rich he is
 

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I love it when they go 2 for 1, though that won't happen for a while.. I have 8 shares of AMD currently, sold my few shares of Intel a while ago.. Many people think that Intel is the better buy for the future and AMD is the better buy currently.
 

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I've never invested in high-tech. I've got my money in blue chip stuff like EnCana (oil), CP Ships, Fairmont hotels (not doing great), CP Rail. It'll help when I've gotta go to university and the dividends are a nice allowance additive.
 

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Originally Posted by nizfiz

I've never invested in high-tech. I've got my money in blue chip stuff like EnCana (oil), CP Ships, Fairmont hotels (not doing great), CP Rail. It'll help when I've gotta go to university and the dividends are a nice allowance additive.

Are you all in stocks or is some of that mutual funds? If you're in mutual funds also, you should seriously consider divident reinvestment. Instead of receiving dividends, that money would turn around and purchase additional shares for you. Since you can't purchase partial shares, the remainder sits in a money market account.
 
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