Did anyone read or hear this "less than 10% of total revenue" elswhere?
Advanced Micro Devices, Inc. ( AMD) has total market capitalization of $4.98 billion. Currently the stock is being traded around $7 and has been in a 52-week range between $5.60 and $9.58.
Due to an unexpected decline in demand and pricing recently, AMD said that its wireless product sales will account for less than 10% of total revenue. Also, AMD has notable debt considerations. To meet $2.4 billion debt and capital lease obligations, AMD had $1.8 billion in liquid assets in 2010, which is less than that of 2009. Nonetheless, the company is on solid footing because of its cash flows.
AMD generated $4.8 billion and $1.6 billion of net revenue from computing solutions and graphics, respectively, in 2010. Thus, its gross profit margin increased by 4% to 46% in 2010. Currently, it has a mesmerizing return on equity of 69.2%. Earnings per share for AMD stock is $1.12, better than that of Nividia ( NVDA) stock but less than Intel's ( INTC) $2.18 and IBM’s ( IBM) lucrative $12.32. However, AMD stock’s performance can be drawn from its low price-to-earnings ratio of 6.41, the lowest among its competitors. This is why AMD stock is likely to increase in the future, and shares could very well double in price. Thus, I rate this stock as a buy.
seekingalpha.com 
kny |
