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

AMD also will review whether there's any impairment to ATI's intangible assets, which would result in an additional -- and possibly material -- noncash charge.

Two quarters ago, AMD took an impairment charge related to ATI of more than $800 million.

Despite the noncash nature of these charges, a significant diminishing of the company's assets is the last thing the company needs as it likely faces several quarters of continuing losses and increasing doubts about its viability as a standalone company. Ironically, the company's ATI division is probably its most viable business.

AMD warned Dec. 4 that its fourth-quarter revenue would plummet 25% from the third quarter to about $1.18 billion. This prompted investment banking firm Collins Stewart, which was already projecting calendar 2009 operating losses of $700 million, to say it didn't expect the company to achieve operational break-even revenue before 2010.

On Tuesday, additional dourness came forth from a report by Friedman Billings that recent checks with Asian chip distributors were worse than their prior expectations, reflecting continued global demand weakness. The firm believes shipments from AMD, Texas Instruments (TXN - Get Report), Microsemi (MSCC - Get Report) were down as much as 20% to 30% month over month in November.

In his widely read "20 Surprises for 2009" published Monday, Doug Kass compiles a list of what he calls outliers, events that have a reasonable chance of occurring next year despite their long odds. Kass puts and AMD bankruptcy filing on his list, citing a general lagging of tech stocks in 2009 as capital spending by companies loses ground to maintenance expenditures.
2 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
AMD $1.83 0.00%
INTC $28.64 0.00%
MSCC $30.88 0.00%
TXN $51.14 0.00%
AAPL $93.99 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs