Tech Talk

MB

Today I would like to talk about two Tech stocks, one that I think will go up in the long run, and one that I think can start falling very soon. Both of these stocks are bigger names in the tech world and the real world. One fell from grace and is starting to hit the bottom, while the other is up there in the world and can start falling if this story gets out. The two stocks I wish to talk about are Dell and AMD.

Stock that will go up in the long run:

Advanced Micro Devices(AMD) - 15.43

Right now AMD is three dollars up its 52-week low, it fell from the mid 30s over the past year, the reason for this is that AMD has 2 billion dollars in long term debt. Now your probably thinking how is this stock going to go up. Here is where the tech world comes in. AMD recently partnered with ATI, the graphics card manufacturer to broaden its horizon in the tech world. That there is one good thing. Secondly, AMD just announced two new chips to be released this summer, the first is called Phenom and the second is called Barcelona. The Barcelona chip is for lower end computers while the Phenom is for higher end computers. They both are bringing quad core power and the Barcelona is bragging about 2.9 GHz speed. The Phenom however is named for that very reason, AMD is looking for the Phenom to be exactly that, a Phenom in speed and power. Right now AMD is way behind Intel, but with these two chips it can gain ground on Intel and who knows even pass them eventually. These two chips will help develop the tech world and when more details are brought out about the Phenom may even advance it. I was watching Morning Bell a couple of days ago and one of the broadcasters set a price target for AMD at 19 or more. And after I did this research I believe him. You may not see full blown increases everyday from AMD to start, but by Q4 of this year after the chips are released and people are buying them, the stock will rise and regain its past glory.

Stock that I think will begin to fall:

Dell Inc(DELL) - 26.06

Today I was browsing around digg.com and I found something that I just had to click on, Dell is being sued by New York for fraud. They are being charged of false advertising and deceptive business procedures. After reading the article I was appalled by the way Dell acts when having people purchase new computers. To sum it up when a new customer buys a computer, Dell advertises that the customer will not have not have to pay any interest rates on it when charging for it. Dell then switches those accounts that are in the no interest rates and puts them in accounts where interest rates are greater then 20%. This allows Dell to make a nice profit. The court is forcing Dell to pay damages to its customers, create new standards for such to ensure this offense would not repeat itself, pay a $500 civil penalty for each penalty, reimburse the New York state court for court fees, and return profits through which it earned through its practices. So right now Dell is in a world of hurt. If you wish to read the entire article you can find it here:

http://www.pcworld.com/article/id,131902/article.html