A breakdown of the bear case:
1. AMD missed earnings, and is still far from unprofitable. This is a huge blow to the turn around case for AMD
2. New consoles sales such as PS4 and Xbox One, which gives AMD a significant portion of its revenue, won't be out for at least a couple of years. This gives AMD very littles breathing room.
3. AMD just broke through its major price channel stretching back to 2008-09. This was the final nail in the coffin for me. http://followthechart.com/amd-technical-analysis-7192015/
I'm thinking of shorting here. Anyone have any thought or inputs?
I'm long, as an option on a turnaround, they just need a couple of new products doing well (or threatening to) and it will do very well, it's at a pretty extremely distressed point in price and sentiment. We'll have to see if they deliver, but the Zen cores look pretty promising for instance. Shorting may be okay short term, but looks a bit perilous.
