SELL ALERT: Advanced Micro Devices (AMD)
6th September 2018 |
Our resolve in holding Advanced Micro Devices was rewarded with the share doubling between June and this week. We had to sit through some wobbles along the way, not least as the cryptocurrency bubble popped, but the company’s core products are well regarded and right now it has enjoyed something of a manufacturing advantage relative to Intel.
The reason I am recommending you sell now is because there is an acute risk that the acceleration has priced in perhaps too much good news in a short period of time and the risk of a drop back towards $20 is increasing.
This is one of those discretion is the better part of valour situations where it is in my view better to take money off the table now rather than hold on for the uncertain prospect of slightly higher levels.
AMD is still a wonderful company and I will open to reinitiating a position, as I did with Autodesk, after it has pulled back. I recommend selling now to capture the 93.16% gain recorded to date.
Action to take: sell Advanced Micro Devices
Ticker: AMD US
Price recommended at: $14.76
Last close (as at 21/08/2018): $28.51
All the best,
Eoin Treacy
Investment Director, Frontier Tech Investor
