Fast Changing Recommendations Whipsaw Advanced Micro Devices

Forecasting future stock prices is very tricky. On Tuesday, January 10, 2006 Piper Jaffray upgraded Advanced Micro Devices (AMD) to outperform from market perform and raised its price target to $45 from $26. Piper Jaffray argued that Dell Computer (DELL) would probably start using AMD chips in 2006. DELL would neither confirm nor deny the speculation. AMD closed up $1.68 at $34.93.

The next day AMD closed up at $36.27. On Thursday AMD traded as high as $37.46 before closing at $35.35.

On Friday, January 13 AMD gapped down on the open after Deutsche Bank lowered is rating from hold to sell and lowered its target price to $26. AMD closed at $34.13, down $1.22 (3.45%) on heavy volume.

No one knows what the stock will do in the near future but according to the "experts" it's headed to $26 or $45. Take your pick.

Posted January 13, 2006.