AMD may believe it has its financial house in order, but a frantic Goldman Sachs today added the little chipper who could(n’t) to its "SELL! SELL!! SELL GODDAMIT!!!" list, claiming it reckons the firm will lose rather a lot of money this year.
“We expect the company to continue to generate sizable losses in 2010, driven by the combination of losses at GlobalFoundries, meaningful exposure to the low-end of the desktop business, and potential share loss in high-end servers,” wrote Goldman analyst Jim Covello.
Shame no one told Mr. Covello that AMD had deconsolidated from Glofo, but, then again, Goldman analysts are so busy calculating their bonuses, we doubt there’s much time left for boring old fact checking.
“Importantly,” carried on Covello, rather self-importantly, “we continue to highlight that AMD’s peak EPS is likely to deteriorate cycle-to-cycle given its high interest expense and higher share count vs. last cycle.” So, even when AMD wins, it loses, apparently.
Shaking his top-hatted head, Covello laments that the firm’s stock is up 264 per cent over the last 12 months, a sure sign of impending doom in Goldman Sachs’ book.
Also added to GS’ dramatically named “Conviction Sell List” is Canadian Telecom firm Rogers Communications, because you just can’t trust those pesky Canucks.