Advanced Micro Devices (NASDAQ:AMD) has had a rough three months with its share price down 22%. However, stock prices are usually driven by a companys financials over the long term, which in this case look pretty respectable.
Advanced Micro Devices doesn't pay any dividend to its shareholders, meaning that the company has been reinvesting all of its profits into the business. This is likely what's driving the high earnings growth number discussed above.
In total, it does look like Advanced Micro Devices has some positive aspects to its business. Despite its low rate of return, the fact that the company reinvests a very high portion of its profits into its business, no doubt contributed to its high earnings growth. That being so, a study of the latest analyst forecasts show that the company is expected to see an increase in its future earnings growth. Thats why I have been adding more AMD and I think investors will be rewarded in the future on this undervalued stock. =)[Miser] [Miser] [Miser]
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