This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

AMD Gets Kicked While It's (Still) Down

Updated from 12:46 p.m. EST

SAN FRANCISCO -- Longtime investors in chipmaker Advanced Micro Devices (AMD - Get Report) are used to disappointment -- why not end 2008 with another bleak signpost for the months ahead?

The company reported late Monday in a Securities and Exchange Commission filing that it laid off 100 more workers than expected during its most recent quarter (a total of 600), which would also result in a charge of $70 million, $20 million more than previously projected.

That's not the really disappointing part -- for investors, not for the additional 100 now without jobs -- and it even led one media outlet to post the unfortunate headline earlier Tuesday " Intel (INTC - Get Report), AMD Lead Broad Advance by Chip Issues."

AMD shares ended Tuesday's trading session up 11 cents, or 5.2%, to $2.21.

(By the way, it's probably time for a couple of business journalism versions of " "Man Laws": 1) A 4-penny rise by a $2 stock should never be called an advance, and 2) the words "AMD" and "lead" should, going forward, never be used in the same sentence.)

Yes, taking another $20 million out of AMD's coffers isn't good, and the idea that 100 more bodies had to be cut doesn't say much for future demand, but you have to give AMD props for scaling down costs amid a dire economic slowdown. The company still employs about 16,000 workers.

Here's the real kicker: AMD will once again be writing down the value of goodwill related to its 2006 acquisition of graphics chipmaker ATI Technologies, following an updated outlook for that business. How much of a writedown? The company has no idea. "The Company expects that the impairment charge will be material, but, as of the time of this filing, the Company is unable to estimate the amount or range of amounts of the impairment charge," AMD said in the filing.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
TXN $56.64 0.37%
AMD $3.66 1.67%
INTC $29.90 0.17%
MSCC $32.48 -0.03%
AAPL $93.24 -0.41%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs