So question, usually the buying company takes a hit on the stock. What from the technicals gave you the impression AMD was going to bounce?
as of last Fri i actually believe that the Supreme Lisa would provide details about the XILINX acquisition some time after the ERS, as did most traders, thus the doji and the confirmation / corroboration
judging from how it has been traded today, that's the perception. but Xilinx has been a highly profitable co---adding complementary product lines to AMD----albeit its growth rate is not as hi as the new AMD. in terms of EPS, xilinx adds alot to both the numerator and denominator
After the announcement of this $35 billion all-stock deal, Investors were uneasy about what the deal means for both AMD and XLNX, sending shares of AMD down 4.1% to $78.89 in afternoon trading. Xilinx shares up 8.7% to $124.51, well below the implied valuation of $143 a share that AMD agreed to pay. The SUpreme Lisa Says the Xilinx Deal Is ‘Transformational’ When asked the deal price, the Supreme Lisa said that in tech it is important to make bold moves, and scale is critical to a company’s long-term success. “We bring together scale in all the right places, because we’re very compute focused,” Su said. That is, the company needs this big scale to keep delivering high-performance chips. “We’re very compatible from a technology standpoint, and I think the financial models are very complimentary as well.” RBC Capital Markets analyst Mitch Steves wrote in a client note Tuesday that “Our longer-term view suggests that AMD is now a ‘must own’ across many indexes/portfolios as it is solidified as a large-cap semiconductor asset at this time,” Steves wrote.
https://www.servethehome.com/amd-to-acquire-xilinx-continuing-consolidation/ Nice article on the more strategic aspects of the partnership.
Everyone pretty much thinks in the long-term it's a good deal with the access it gives AMD, but the drop is for the short-term. If we weren't in the midst of this election and some crazy volatility, I would've jumped all over AMD on that drop. I will sometime soon hopefully. Speaking of which, this opening today seems to be shaping up to look ugly at the moment. I guess bad election uncertainty + coronavirus news + no stimulus is a bad thing. *sigh*
Only bright spot for me today is tencent. All time high, crossed $600 hkd. Ios port of 5 year old mmo generated $50mil in 1st week lol.
SPY has already broken down the uptrend from Mar, trading way below the lower channel short term, more likely, it'll revisit the low in mid-Sep, ~ 320. if support at 320 doesn't hold, then 306, the ~ 38% retracement level
Only position saving my hide this week - probably even for the week over my portfolio. Basically offsetting the slaughter I've had in Visa/Mastercard/Google/JPM/etc. Not sure how much longer I will hold onto the puts as I didn't expect the market to go down so far so fast. Might close out (or half my position) and open a new put position in Vail Resorts (they haven't dropped as much but I would think they will see an issue if ski season is impacted by Covid). Plus then I'd still have a short position for any election time turmoil.
Don't think it will move the needle on stock price since they already gave 4Q guidance ytd, but watching for the entertainment. starts in 15mins.
my bearish CALL spread, 540/550, is working out, deep in the money, expires Fri i m making another bet that there will be more downward pressure on NFLX, ~38% retracement from the Mar low is ~~ 460 sold 480/490 CALL spread for a credit of $5.15, defining my max risk of 4.85
wtf MSFT had a clean ERS, beating estimates and we're witnessing is a continuation of a head-n-shoulder formation, an upside-down "W" looks like MSFT be drop to below 200, if so pick up some shares meanwhile, FSLR also beat estimate, but it POP
