Chris Lau - Seeking Alpha

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Tuesday, December 10, 2013

Boosting AMD Position, Reducing ARNA (For Now)

Originally posted here: http://seekingalpha.com/instablog/71188-chris-lau/2483111-raising-position-in-advanced-micro-devices-amd
Two major positional changes were made on kapitall.
The abrupt rebound in Arena Pharmaceuticals (ARNA) opened a short-term exit opportunity in the practice portfolio. This is not to say Arena is a stock to sell. Its long-term value is over $11, but the sale was needed to make up for big losses on BlackBerry (BBRY).
Arena has since dropped after the sale:
click to enlarge)

The position in Arena will be boosted when the profit-taking is completed.
Arena was replaced by Advanced Micro Devices, which is now the top position. AMD benefits from the frantic demand for bitcoins. AMD GPUs are inexpensive, and many cards are now sold out. Even the newly released R9 280 cards are mostly sold out. While GPU shortages will be temporary, revenue from sales of XBox One and Sony PS4 will support AMD shares:
click to enlarge)

TOP HOLDINGS, % Allocation
CASH 57%
ADVANCED MICRO DEVICES INC (AMD)
22%
ALCATEL LUCENT ALU)
10%
The portfolio recovered losses that were incurred since August, 2013.
(click to enlarge)