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poopfart
May 5, 2010


booyah bitches

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greasyhands
Oct 28, 2006

Best quality posts,
freshly delivered

antishatter posted:

drat, you must have a shitload of money in your brokerage account if you can write calls and puts. Are you naked or do you own shares?

Naked, and the margin requirements are very high, but I didnt have any other plays that i was interested in. I don't have a "shitload" but I'm not trading with 5k like most people in here seem to be.

destructo
Apr 29, 2006

poopfart posted:



booyah bitches
Props.

antishatter
Feb 25, 2006
jawsome with a j

greasyhands posted:

Naked, and the margin requirements are very high, but I didnt have any other plays that i was interested in. I don't have a "shitload" but I'm not trading with 5k like most people in here seem to be.

Morgan Stanley requires a $100k account to be able to write puts and calls. I consider that a "shitload".

Baddog
May 12, 2001
Check out these assholes. I had a lot of money in one of their funds.

http://www.nytimes.com/2010/06/20/business/20stra.html?_r=1

Plastic Jesus
Aug 26, 2006

I'm cranky most of the time.

antishatter posted:

Morgan Stanley requires a $100k account to be able to write puts and calls. I consider that a "shitload".

That's absurd, to the point that it seems like you might be mistaken. I'm not trying to be a dick or tell you that you're wrong but that seems really strange. If true the same restriction doesn't exist for short spreads, right?

antishatter
Feb 25, 2006
jawsome with a j

Plastic Jesus posted:

That's absurd, to the point that it seems like you might be mistaken. I'm not trying to be a dick or tell you that you're wrong but that seems really strange. If true the same restriction doesn't exist for short spreads, right?

They require you to be able to purchase the stock the options are for, so while you can do write them naked they want you to be able to cover if necessary, or such is my understanding. Not sure on the short spreads.

Obviously to just buy puts or calls you need much much less money, but to write them they require the large amount of capital.

Rabidbunny
Feb 7, 2003

Plastic Jesus posted:

That's absurd, to the point that it seems like you might be mistaken. I'm not trying to be a dick or tell you that you're wrong but that seems really strange. If true the same restriction doesn't exist for short spreads, right?

Not absurd. My boyfriend could have one with a different company with the same limit. Or a $25000 limit but you have to have a certain number of trades per year. Essentially the $25k limit requires you to be a day trader which he is not.

ayekappy
Aug 22, 2004

Brie Cheesin'

Rabidbunny posted:

Not absurd. My boyfriend could have one with a different company with the same limit. Or a $25000 limit but you have to have a certain number of trades per year. Essentially the $25k limit requires you to be a day trader which he is not.

I hate that motherfucking federal 25k limit too. Oh man do I hate it. Talk about needing money to make money.

Free Gucci Mane
Aug 31, 2009

by Ozmaugh
Last quarter, someone asked to be reminded to buy NFLX before earnings. So here I am, reminding you to buy NFLX before earnings.

Josh Lyman
May 24, 2009


Free Gucci Mane posted:

Last quarter, someone asked to be reminded to buy NFLX before earnings. So here I am, reminding you to buy NFLX before earnings.
That was me, and I'm two steps ahead of you on that buddy. :hfive:

Tasty and Delicious
Jun 2, 2009

by Y Kant Ozma Post
Wednesday after close right? I'll be in like a sheep.

Josh Lyman
May 24, 2009


Tasty and Delicious posted:

Wednesday after close right? I'll be in like a sheep.
Yep. You may get a good entry point tomorrow if Goldman can't offset the disappointing earnings of IBM and TI tonight.

Bigass Moth
Mar 6, 2004

I joined the #RXT REVOLUTION.
:boom:
he knows...
Why is COSI so cheap? I was under the impression they were an expanding brand. Is Panera eating their market space?

FlyWhiteBoy
Jul 13, 2004
I'm just starting to get involved with evaluating stocks. AMD seems really low to me can someone with greater knowledge break that one down for me?

ayekappy
Aug 22, 2004

Brie Cheesin'

FlyWhiteBoy posted:

I'm just starting to get involved with evaluating stocks. AMD seems really low to me can someone with greater knowledge break that one down for me?

Well, working at Best Buy for a while, I can say that very few quality machines actually have AMD processors (don't consider HPs quality) and that most consumers still don't trust AMD; I'd say that AMD is finally doomed. Because they still lost money even when people liked them more.

Foma
Oct 1, 2004
Hello, My name is Lip Synch. Right now, I'm making a post that is anti-bush or something Micheal Moore would be proud of because I and the rest of my team lefty friends (koba1t included) need something to circle jerk to.

FlyWhiteBoy posted:

I'm just starting to get involved with evaluating stocks. AMD seems really low to me can someone with greater knowledge break that one down for me?

here are their earnings for the last couple quarters

Diluted Normalized EPS
-0.08
0.47 (Intel paid them a couple billion to settle lawsuits this Quarter)
-0.18
-0.49
-0.60

still seem low?

Josh Lyman
May 24, 2009


FlyWhiteBoy posted:

I'm just starting to get involved with evaluating stocks. AMD seems really low to me can someone with greater knowledge break that one down for me?
AMD has been in the shitter ever since the original Core architecture, which was 4 1/2 years ago.

Nifty
Aug 31, 2004

Where does one have access to charts for commodity trading and call/put prices? I havent really been able to find anything online so Im assuming there is a platform.

antishatter
Feb 25, 2006
jawsome with a j

FlyWhiteBoy posted:

I'm just starting to get involved with evaluating stocks. AMD seems really low to me can someone with greater knowledge break that one down for me?

So they have a fairly high beta compared to the industry average, meaning you can expect much more volatility. Their PE ratio is pretty low which may suggest they are undervalued, however they don't have any products that I have faith in them turning a huge profit from. Their levered cash flow is in the negative which means they are paying out a poo poo load of money on debt interest.

Hobologist
May 4, 2007

We'll have one entire section labelled "for degenerates"
Did you miss the person who mentioned the big lawsuit AMD won from Intel? Those earnings aren't real.

antishatter
Feb 25, 2006
jawsome with a j

Hobologist posted:

Did you miss the person who mentioned the big lawsuit AMD won from Intel? Those earnings aren't real.

That doesn't change the p/e ratio. Just means the forward p/e is likely wrong. I didn't suggest he go invest in the stock did I?

greasyhands
Oct 28, 2006

Best quality posts,
freshly delivered

antishatter posted:

That doesn't change the p/e ratio. Just means the forward p/e is likely wrong. I didn't suggest he go invest in the stock did I?

What? The settlement has already been paid, so yes it changes the p/e ratio.

antishatter
Feb 25, 2006
jawsome with a j

greasyhands posted:

What? The settlement has already been paid, so yes it changes the p/e ratio.

EPS is based on the last four quarters (regardless of where the money came from) and so trailing p/e is too. The future profit outlook from AMD is dim as per what I said originally.

edit: Of course if this ends up being true it would have been a great buy.

antishatter fucked around with this message at 21:38 on Jul 20, 2010

Josh Lyman
May 24, 2009


Apple bends everyone over and fucks them in the rear end.

And man, does it ever feel good. :a2m:

antishatter
Feb 25, 2006
jawsome with a j

Josh Lyman posted:

Apple bends everyone over and fucks them in the rear end.

And man, does it ever feel good. :a2m:

I feel like it makes a lot of sense as an acquisiton, especially if apple is trying to move into the lower end market. IMO AMD products are an excellent bang for your buck, its just hard to compete with silicon giant Intel.

antishatter fucked around with this message at 21:47 on Jul 20, 2010

Star War Sex Parrot
Oct 2, 2003

antishatter posted:

I feel like it makes a lot of sense as an acquisiton, especially if apple is trying to move into the lower end market. IMO AMD products are an excellent bang for your buck, its just hard to compete with silicon giant Intel.
Crazy Apple acquisition rumors are abundant for every quarterly earnings call. I don't even pay attention to them anymore.

antishatter
Feb 25, 2006
jawsome with a j

Star War Sex Parrot posted:

Crazy Apple acquisition rumors are abundant for every quarterly earnings call. I don't even pay attention to them anymore.

Apparently AMD doesn't even do fabrication anymore, they no longer even own the means to do it. All their fab is done by GlobalFoundries. So you are probably accurate in saying its a crazy rumor or Apple is trying to scare Intel.

Hobologist
May 4, 2007

We'll have one entire section labelled "for degenerates"

antishatter posted:

That doesn't change the p/e ratio.

But it does make the p/e ratio completely meaningless.

antishatter
Feb 25, 2006
jawsome with a j

Hobologist posted:

But it does make the p/e ratio completely meaningless.

In my original post I said "Their PE ratio is pretty low which may suggest they are undervalued, however they don't have any products that I have faith in them turning a huge profit from." which, I will admit is a little confusing.

All I was trying to communicate is that The P/E value as an individual indicator suggests that the stock is undervalued. HOWEVER, due to notoriously poor performance I have little faith that they will be able to turn a profit in the near future. Meaning that their stock is not undervalued regardless of p/e values.

antishatter fucked around with this message at 22:30 on Jul 20, 2010

greasyhands
Oct 28, 2006

Best quality posts,
freshly delivered

antishatter posted:

EPS is based on the last four quarters (regardless of where the money came from) and so trailing p/e is too. The future profit outlook from AMD is dim as per what I said originally.

edit: Of course if this ends up being true it would have been a great buy.

you said

abtishatter posted:

That doesn't change the p/e ratio. Just means the forward p/e is likely wrong. I didn't suggest he go invest in the stock did I?

Which is objectively wrong, it DOES change the ttm p/e (trailing 12 months has a huge non-recurring settlement that moved earnings from a big negative number to a respectable positive numbers... hence AMDs illusory p/e. Operating earnings are negative and have been for years). The settlement will actually have no effect on the forward p/e, which you seem to think it will.. so either I'm completely misunderstanding you, or you're confused.

antishatter
Feb 25, 2006
jawsome with a j

greasyhands posted:

you said


Which is objectively wrong, it DOES change the ttm p/e (trailing 12 months has a huge non-recurring settlement that moved earnings from a big negative number to a respectable positive numbers... hence AMDs illusory p/e. Operating earnings are negative and have been for years). The settlement will actually have no effect on the forward p/e, which you seem to think it will.. so either I'm completely misunderstanding you, or you're confused.

I mentioned at least once how I don't have faith in any of their future products, regardless of whatever server chip they are hyping. I was using forward p/e wrong anyway. Bigger = the company is doing worse. So the argument is moot anyway. Forward p/e is calculated looking at the last several quarters earnings. A huge one time payout would affect the p/e because it would skew the data. At least, such is my understanding.

When I said It doesn't change the p/e ratio I was responding to hobologist about how the earnings aren't real. I meant it as in "the earnings not being real is irrelevent because the p/e is what it is" not as in "this one time cash money deposit will never ever have effected the p/e ever"

Plastic Jesus
Aug 26, 2006

I'm cranky most of the time.

antishatter posted:

I mentioned at least once how I don't have faith in any of their future products, regardless of whatever server chip they are hyping. I was using forward p/e wrong anyway. Bigger = the company is doing worse. So the argument is moot anyway. Forward p/e is calculated looking at the last several quarters earnings. A huge one time payout would affect the p/e because it would skew the data. At least, such is my understanding.

Forward p/e isn't calculated from previous quarters' earnings, it's just price to expected earnings ratio. Also 'moot' means 'debatable,' not 'inconsequential.'

lazybrain
Feb 6, 2007

antishatter posted:

Forward p/e is calculated looking at the last several quarters earnings.

This is dead wrong. You're thinking of historical p/e. Forward p/e is based on expected future earnings, which is what the analysts expect. Hence big market moves when earnings either beat or fall short of the "expected" numbers. When the earnings change unexpectedly, the price will adjust to maintain the same basic valuation, all other influences excluded.

A high or low p/e doesn't necessarily signify good or bad. Maybe a good company trades at a premium valuation to its benchmark index because the market anticipates greater earnings growth in the future. Likewise, a low p/e could mean that earnings are falling off a cliff and future doom n' gloom is already baking into the price.

greasyhands
Oct 28, 2006

Best quality posts,
freshly delivered

antishatter posted:

I mentioned at least once how I don't have faith in any of their future products, regardless of whatever server chip they are hyping. I was using forward p/e wrong anyway. Bigger = the company is doing worse. So the argument is moot anyway. Forward p/e is calculated looking at the last several quarters earnings. A huge one time payout would affect the p/e because it would skew the data. At least, such is my understanding.

When I said It doesn't change the p/e ratio I was responding to hobologist about how the earnings aren't real. I meant it as in "the earnings not being real is irrelevent because the p/e is what it is" not as in "this one time cash money deposit will never ever have effected the p/e ever"

ok, you're just confused. And if you invest with a "the P/E is what it is" attitude and ignore why it is what it is, you're going to be in a world of pain in very short order.

greasyhands
Oct 28, 2006

Best quality posts,
freshly delivered

Plastic Jesus posted:

Forward p/e isn't calculated from previous quarters' earnings, it's just price to expected earnings ratio. Also 'moot' means 'debatable,' not 'inconsequential.'

moot actually means both things, depending on context. It's one of those dumb english words.

Usage Note: The adjective moot is originally a legal term going back to the mid-16th century. It derives from the noun moot, in its sense of a hypothetical case argued as an exercise by law students. Consequently, a moot question is one that is arguable or open to debate. But in the mid-19th century people also began to look at the hypothetical side of moot as its essential meaning, and they started to use the word to mean "of no significance or relevance." Thus, a moot point, however debatable, is one that has no practical value. A number of critics have objected to this use, but 59 percent of the Usage Panel accepts it in the sentence The nominee himself chastised the White House for failing to do more to support him, but his concerns became moot when a number of Republicans announced that they, too, would oppose the nomination. When using moot one should be sure that the context makes clear which sense is meant.

spf3million
Sep 27, 2007

hit 'em with the rhythm
I thought it was moo.

Hobologist
May 4, 2007

We'll have one entire section labelled "for degenerates"

antishatter posted:

In my original post I said "Their PE ratio is pretty low which may suggest they are undervalued.

Yes, and it's still not true. There's no way the P/E ratio of AMD can suggest anything of the sort. Their current P/E ratio has zero explanatory value of their future earning and prospects.

antishatter
Feb 25, 2006
jawsome with a j

Hobologist posted:

Yes, and it's still not true. There's no way the P/E ratio of AMD can suggest anything of the sort. Their current P/E ratio has zero explanatory value of their future earning and prospects.

I completely agree with this. That's what I was trying to convey.


greasyhands posted:

ok, you're just confused. And if you invest with a "the P/E is what it is" attitude and ignore why it is what it is, you're going to be in a world of pain in very short order.

I don't at all invest like that I was trying to say that the p/e ratio is no indicator of anything for amd.

antishatter fucked around with this message at 18:33 on Jul 21, 2010

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Josh Lyman
May 24, 2009


loving Bernanke put. gently caress my life.

Is it just me or are the people posting in the GBS Economic Disaster Megathread nothing more than passing market observers?

edit: That was it. That was the line. 2:43pm. Load up on SPY calls, this dog can hunt!

Josh Lyman fucked around with this message at 19:45 on Jul 21, 2010

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