27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Are PC’s Turning The Corner?
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Oppenheimer analysts Rick Schafer, Shawn Simmons and Joseph Zaccaria highlight the sales beat, revenue miss and guide down in fourth-quarter sales for Advanced Micro Devices.
Management now expects fourth quarter sales to be down 10 percent quarter-over-quarter to approximately $950 million (well below consensus of $1 billion) as modest growth in computing/graphics can only partially offset seasonal declines in semi-custom.
On the bright side, they pointed out the new joint venture with Nantong Fujitsu Microelectronics, which, when closed, will provide AMD with $320 million in cash, an infusion it really needs to somewhat offset the approximately $260 million cash burn the firm forecasts through 2016.
According to a report issued Friday, “While AMD's updated product road-map could help re-accelerate non-PC growth, and new semi-custom design wins are encouraging, time-to-revenue (2H16 at the earliest) and structural PC challenges likely remain an overhang for the foreseeable.” Given the above-mentioned headwinds, however, the analysts maintain an Underperform rating on the stock.
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A Mixed Report
Canaccord analysts Matthew D. Ramsay and Steven Lee, on the other hand, are not as bearish on Advanced Micro Devices, and thus maintain a Neutral rating and $2.00 price target on the stock.
The experts described the third-quarter results as “solid,” and noted that the sale of its assembly and test business to a minority-owned joint venture “should allow for increased focus, a welcome cash infusion, and relieve pressure on the business to allow the new management team to continue to gradually shift the business and deliver its solid long-term product roadmap.”
Overall, the analysts think the company’s diversification strategy continues to progress gradually, while a renewed roadmap could poise it for “more defensible long-term sales beginning in earnest in 2H/16 as the roadmap moves onto FinFET nodes.”
Moreover, they pointed out, while the third saw both businesses deliver quarter-over-quarter growth for the first time in several years, revenue still fell roughly 25 percent year-over-year, and “another restructuring is just underway to properly size the cost structure.”
Finally, they pointed out, although Advanced Micro Devices' engineering teams continue to present “well-architected APU and GPU products,” competing companies Intel Corporation (NASDAQ: INTC) and NVIDIA Corporation (NASDAQ: NVDA) still have foundry and scale advantages. So, although Canaccord analysts have confidence in the leadership under new CEO Lisa Su, they are waiting for “tangible signs of multi-quarter business stability and new FinFET products before becoming more constructive.”
Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.
Image Credit: Public Domain27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.