AMD (AMD) came within a few pennies of its 52-week low yesterday. It traded at $12.41. Perhaps traders caught wind of the fact that the x86 processor company will be cutting prices again.
According to The Inquirer, the company will cut prices on several of it Athlon chips as early as next week.
Yesterday’s WSJ identified AMD as one of several companies that might be sold by Wall St. because it will not longer have access to cheap capital due to trouble in the credit markets. As the Journal writes: “Semiconductor maker AMD, for example, had negative free-cash flow of nearly $1.5 billion over the past 12 months and the amount of cash it generates has been extremely volatile over the past five years, according to Morgan Stanley.”
That means AMD shares could see $10 before they see $15.
Douglas A. McIntyre