I bought 50 AMD stocks about 5 years ago, should I sell or hang on?
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You may have waited just a tad too long to think about selling. Are you about even with what you bought it for? Tech stocks in general are subject to girating ups and downs. In my opinion they normally do not make real good investments. Having said that, I have been known to invest in a few every now and then but only with a very small percentage of my capital.
You do have only 50 shares so your risk is marginal. A savings account is generally not a great option but there are exceptions. Your options are standing pat and hoping for a turnaround--about a 65% probability (the company is not a complete dog) or dumping the stock and investing elsewhere or putting the money is a savings account. The one big advantage of the savings account currently is that the money will be available for you if the market should have a 25% sell off. This is not as far fetched a hypothesis as it might first seem. If that does happen your savings will be worth 25% more than if you leave it in AMD or reinvest it at current levels.
I can not tell you which is best, only what your options are. If it were me, I would probably unload and put it in the bank for now or invest it in a good closed end fund or index fund. Less specific risk that way. Check out SWZ and RSP--one of each.
well it depends what your goals are. A high-yield savings account is pretty safe but low yields. I definatly would sell as i dont see AMD going anywhere, but personally i would find another stock to reinvest in. I don't know if that was your first time investing, but this time maybe do a little more research and
reading you'll pick better stocks with practice.
It's been taking a real beating lately.I would get out. BUT not to a bank!! Just buy some Intel (INTC) with the money...( the company that " creamed" AMD.)
Sound about right ?
It already went up once, and you apparently ignored it! In January of 2006, it was worth about twice what you would have paid for it about 5 years ago, you should have sold half of it then (Which would have made your effective purchase price $0 per share), then you would be unconcerned about what to do now. This is a good rule for ANY single stock you buy that doubles in price... sell half, then you cannot lose anything, and you might win!
As to AMD specifically, it probably makes little sense to sell it at this point; the stock is trading at around $12.86, and has a book value of $10.57; This is $4.00 or so more than Intel. AMD are probably a sound investment long-term who are just suffering from poor current management in a difficult market.
Assuming you don't need the money today, I would just forget all about it. Assuming you paid $700-800 for your initial purchase, that's a cheap price to pay to learn not to be too "greedy"...
Next time something doubles, SELL HALF OF IT!
Good luck!
I would say it has run it's course. You had an excellent run over 5 years, probably held on to long over the summer.
I would suggest getting out of your position entirely or at least a large chunk of it and buy back in lower.
Personally I would look at Micron right now. Credit Suisse and Citigroup have it as a buy while Goldman says sell.
They came out with some bad numbers earlier this week and I have feeling that will carry over to this quarter. Look at NAND and DRAM inventories though, they are beginning to bottom out and Micron will definitely benefit as they have been hurt, a long with many others from glutted inventories of NAND and DRAM.
I would like to apologize on behalf of everyone who said something like "you should have sold it when it was higher".
Unfortunately, we don't get a crystal ball when we're investing. We don't get to look at the 2007 prices in 2005.
Having said that, it entirely depends on your time frame. AMD is an excellent company, perhaps better in many ways that Intel. They will probably go lower. They will probably also go much, much higher in the long run.
The trend of late has been for chips to peak near the end of the year. For this reason alone, I would not personally sell right now.
http://bigcharts.marketwatch.com/interch...
The chart would suggest that AMD's prices are consolidating their fluctuations after a wild decade. I would expect them to bounce off of $10, and likely go up from there into the end of 2007.
If you are willing to wait a few more years, you will likely do well. I would personally look to sell at any price above $35.
If you're looking to get out quickly, then get out now, it may still go lower.
No guarantees, but I hope this helps.
http://www.silentwinners.com
I don't see AMD getting Intel in the PC arena with much better market share than today. On server it migth gaing some more marging with Barcelona and their 8 Hyper-Trasnport Opteron socket when it arives... But the volume is on the PC and I don't see them surpasing Core 2 Duo... And since laptops wil outsell desktop, their Turion64x2 is far behind Core 2 Duo.. I would move on to a better stock. BAC for example
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