ATI Stock

[swaaye]

Who thinks that ATI's downward spiraling stock price is presenting a fabulous buying opportunity soon? I mean, they have so much on the horizon in the next year or so I'd imagine a recovery is inevitable...

Anyone have a theory on why this January (well the last 2) was so great for them while historically it was terrible?

http://finance.yahoo.com/q/bc?t=5y&s=ATYT&l=on&z=m&q=l&c=nvda
http://finance.yahoo.com/q/bc?s=ATYT&t=5y&l=off&z=l&q=l&c=

 

[epicstruggle]

I dropped some money at 12, and 11.50. Will likely put more every 50c fall.

epic

 

[Blade]

I sold my shares in NVDA (making a svelte $20 after commission.. yeah, I know) and bought about 80 shares of ATYT.

I think it was $11.99. No worries, it'll hit $16-17 in no time.

 

[pax]

I dont get ati stock. They have a 2nd go at nintento and a go at xbox (with I bet a 2nd go at that as well in a few years). And a solid foot in pc vid.

My next vid will be ati when the r600 series based on xbox 360 core comes out. What the hell more do investors need?

 

[swaaye]

They announced likely poor earnings and delayed their next gen part. That's probably what's going on right now. It should go down a bit more yet. As long as all their next gen stuff isn't awful they will recover.

 

[wireframe]

I dont get ati stock. They have a 2nd go at nintento and a go at xbox (with I bet a 2nd go at that as well in a few years). And a solid foot in pc vid.

My next vid will be ati when the r600 series based on xbox 360 core comes out. What the hell more do investors need?

This has been known, speculated upon, and baked into the price a long time ago. That is to say, the stock has been inflated in price to accommodate future earnings. This is normal. The stock is now reacting to unforseen events such as the R520 delay. Another factor is how others (competitors and allies) are doing in the industry or any industries thay be spread out in. For example, if it looks like Nvidia is able to capitalize on ATI's failings, this will also have an effect. In the case of the console business, those contracts are already locked in so no matter what Nvidia does they cannot affect those deals greatly.

You will note that the stock market is very finnicky and it can pay handsomely to play with a cool head. Prices are affected by day trading and people looking to make a quick buck here and there. However, if you are willing to hold longer terms, such as 6 months or a year, you can think about it differently because you are looking at broader trends.

PS. Though in all fairness you did say "investors" and not "speculators". Perhaps we should conclude that speculation plays a larger role in ATI's stock price than investment does.

 

[CMAN]

I wouldn't invest in ATI in the near term unless I knew they would be able to make money off their new products (R520). In addition, high inventory is a big problem for them and they did not write any of it off (therefore it can affect future quarters). Basically, I wouldn't invest until I knew the results of their next quater. But you can make more if you risk more....

 

[epicstruggle]

Basically, I wouldn't invest until I knew the results of their next quater. But you can make more if you risk more....

What would be the fun if there wasnt some risk. You raise good poins, but i think at this point ati has taken a bigger hit then they should have and it might be a good price to jump into their stock. But since the market at times can be irrational it might go lower before it starts climbing again.


epic