Good News Watch: Advanced Micro Devices (AMD) Has a Sense of “Huma” and More

Shares of chip maker Advanced Micro Devices, Inc (NYSE: AMD) have been trending down lately as summer comes to an end. I should mention that we have the stock in our SmallCap Network Elite Opportunity (SCN EO) and our position went from handsome profit to a loss after it reported earnings (See: Advanced Micro Devices, Inc (AMD): When Warm Just Isn't Hot Enough) a month ago in part because the earnings came out on the heals of earnings misses by major tech stocks like Microsoft Corporation (NASDAQ: MSFT) and Google (NASDAQ: GOOG). And while our position is still down, its worth highlighting some of the good news about AMD which could impact the stock as August comes to a close:

Bullish Options Trading. Schaeffer's Investment Research has pointed out continued bullish options trading on Advanced Micro Devices' shares. Specifically, it was noted that 43,000 contracts changed hands on Tuesday with September 3.50 calls being in the greatest demand with nearly 7,000 options being traded. Traders buying long calls apparently expect AMD to rally to $3.63 over the next few weeks.

An Edge on 3D Performance? On a tech note, it was recently reported that AMD's Senior Product Marketing Manager Marc Diana had said that the PS4 has shipped with a sense of Huma [Heterogeneous Uniform Memory Access] from the company – giving it an edge on 3D performance. However, AMD later called the news source where that got reported to clarify Diana's statements:

"During a recent gamescom 2013 interview, an AMD spokesperson made inaccurate statements regarding the details of our semi-custom APU architectures.   AMD will not comment on the Microsoft Xbox One and Sony PS4 memory architectures and will not speak for Microsoft, Sony or other AMD customers."

Attendance at the Citi Global Technology Conference. On Wednesday, September 4, at 9:45 am, Advanced Micro Devices is scheduled to present at the Citi Global Technology Conference (A real-time audio webcast of the presentation can be accessed on the Investor Relations homepage: http://ir.amd.com or by clicking here) with the scheduled speaker being Lisa Su, SVP and General Manager, Global Business Units. Wall Street conferences can potential be a good source of updated information from a company and do have the potential to move a stock. Singapore Real Estate Deal. On a minor note that will impact third quarter earnings, Advanced Micro Devices has recently entered into a conditional put-and-call option agreement to sell and lease-back its Singapore facility as part of its strategy to reduce investments and capital in non-core parts of the business (such as estate). The transaction is expected to generate proceeds of approximately 59 million Singapore dollars (or $46 million), net of all fees. This amount will be reflected in third quarter 2013 financial statements when they are reported on October 17. Share Performance. Advanced Micro Devices rose 0.88% to $3.42 on Wednesday plus the stock is up 50% since the start of the year, down 13.2% over the past year and down 41.1% over the past five years – producing the following long-term chart:

Here is the latest technical chart for investors who are technicians as well as for traders,

 In other words, traders might want to keep an eye on Advanced Micro Devices – especially next Wednesday when the company presents at the Citi Global Technology Conference.

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