Despite posting 6.7% revenue growth and beating estimates by more than 5%, shares of AMD took a pounding, falling as much as 17% following the announcement last week. This is not something that you would ordinarily see for a tech company, especially given the fact that management guided for 22% third-quarter growth, which exceeded expectations.

The reason for the decline was that despite the growth projections, margins for the new gaming consoles were 50% below Street estimates. AMD guided for 10%, while analysts were looking for 20%. Again, this was precisely what I pointed out more than two months ago -- games were not going to be enough, and margins weren't going to be there.

Today, the story has not changed, and the stock is down more than 20% since Friday. Given the company's lack of competitive leverage I can't (in good conscience) recommend these shares. If the PC industry makes a miraculous recovery, then I'll reconsider. But even during the PC boom, AMD was fighting Intel ( INTC) and NVIDIA ( NVDA), which, in my opinion, remain better buys today than AMD. I maintain my 12-month price target of $3.50 on these shares, which is 5% lower than where the stock is trading today.

Buy Sirius XM ( SIRI)

Shares of Sirius XM have been on fire all year. The stock is currently trading around $3.68 per share after having begun 2013 at a price of $2.89. In fact, if you consider the recent 52-week high of $3.77 reached on July 15, the stock has gained as much as 30% year-to-date and 109% over the past year.

Remarkably, Sirius has posted these gains even as Apple and Google have entered the realm of music streaming where Pandora ( P) and Spotify (among others) were already seen as threats. The Street does not seem to care, even though Apple has entered Sirius' precious domain in the automobile dashboard.

I recently chronicled my love-hate relationship with this stock, while detailing both my best and worst moments as an investor. But I don't believe that it's coincidence that the stock is climbing as the company is in the midst of the $2 billion share buyback program.

Not that it makes a bit of difference in terms of value, but it's important to also realize the company-initiated catalyst that is at play here. This makes buying the stock at these levels as close to a no-brainer as there can possibly be.

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