Going back to the Dumpster (NOK, AMD, RIMM)
Mastery goes back to the trash a month later and finds the big winner of our 'Dumpster Dive Stocks' is Nokia (NOK) up more than 70%. Not doing well are shares of AMD (AMD) and Research in Motion (RIMM). However AMD should not be left in the garbage but RIM is nothing but rubbish.
ONE MONTH LATER
Recall we recommended Nokia (NOK) in July, that bet has paid off in spades going from $1.80 to today's price of $3.07. AMD continues to get killed, now its down to $3.80 from its $5 level in July. Since mid March AMD shares have tanked more than 50%. Its a ton of money for AMD with a loss of more than $2.9 billion in market cap. RIM is useless and we won't waste another word on the stock.
AMD NEEDS HELP
The pain continues for AMD with S&P lowering its debt rating earlier this month after the company announced a $300M debt offering. PC sales are down and competitor Nvidia (NVDA) continues to slice away at AMD's margins. Since the July conference call AMD has sunk to a new 12 month low on a weekly basis. There's much to fear as AMD expects Q3 growth to be between -4% to 2% (that's right, negative 4% at the bottom). To bet on AMD now is to take a leap of faith. The question is when will it hit bottom and attract buying interest? Mastery would rather be early to the comeback party than late.
MASTERY Bottom line:
NOK has raged back, take some off the table if you placed the bet in July. AMD is worth a small position at this point. RIM should be left in the dumpster.
3 DUMPSTER DIVE STOCKS
Best of the Blogs
Scanning and identifying the best blog entries every hour
- I Will Be There, Will You? | iBankCoin.com
- On The Ambiguity Of The Fed's Dot Plot | ZeroHedge
- Keynes Was a Failure in Japan – No Need to Embrace Him in Europe | Financial Sense
- Abenomics Crushes Sony: Electronics Giant Forced To Cancel Dividend For First Time Ever | ZeroHedge
- Gold - Watch the €1000 Level | Financial Sense
- Fed Expected to Clarify Course | Financial Sense
- Five Stocks with Old School Sass Today | iBankCoin.com
The most relevant financial news and articles from the Internets
- Iran Might Be More Worried About The US Military... | Business Insider
- Lego Is for Girls | BusinessWeek
- Jim Cramer's Top Stock Picks: AGIO AAPL LUV | TheStreet.com
- Amazon's New Kindle Fire HDX Tablet Is Lighter And Has A Sharper Screen Than The iPad... | Business Insider
- Polls open in Scottish independence vote | Business Insider
- Here's How To Avoid Decision Paralysis | Business Insider
- This Photo Is Europe's Worst Nightmare | Business Insider