Going back to the Dumpster (NOK, AMD, RIMM)

Dumpster Diving for Stocks

A month later we go back in the trash, turns out NOK has bounced 70%.

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.

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.

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 (Flying Kick Style)

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.