For the past month, as the markets have created new all-time highs, there have been numerous stocks to rally under the radar. What might have been top-market news in years past has gone unnoticed, and as a result, I am looking at three stocks that have exploded higher to determine the reason and whether or not each is a buy, hold, or sell!
Waiting for a Pullback in this Fast-Moving Stock
On April 24 I tweeted that Advanced Micro Devices, Inc. (NYSE:AMD) was presenting value after earnings that were better than feared, and that I was buying at $2.54. Since then, the stock has rallied 65%, and although I sold at $3.60, this is a stock that continues to exceed logic with a continued uptrend.
If we look at the company’s quarterly report, its revenue declined 31% and it posted a net loss, yet both were better than the consensus. This is a stock that had lost 70% of its value in the previous year (prior to this recent rally) and had dirt-low expectations. Now, after newly launched chips, buyout rumors, and upgrades, the stock is trading with a great deal of volume.
As we look at the valuation, Advanced Micro Devices, Inc. (NYSE:AMD) is still not profitable but is trading with a very cheap price/sales ratio of just 0.57. Even after its large gains it is still trading at just 50% of 2012’s highs, and I think it is very possible that we see a Groupon Inc (NASDAQ:GRPN)-like performance, which includes a bounce from lows and then consolidation. I think it’s very possible that Advanced Micro Devices, Inc. (NYSE:AMD) will see a pullback at some point, and at that point, I would be a buyer, making Advanced Micro Devices, Inc. (NYSE:AMD) a “buy.”
Too Much Risk Makes this Stock a Dangerous Buy
After years of pessimism and fears of being nationalized, shares of the National Bank of Greece (ADR) (NYSE:NBG) have rallied 75% in the last month. On Monday it traded higher by another 13% on no news, with many believing that it’s still in a post-announcement trend higher after raising enough private capital to avoid being nationalized.
This is a company that is still deeply troubled and is at the epicenter of an economic collapse. With that said, most investors remember the quick 200%-400% gains realized in shares of Bank of America Corp (NYSE:BAC) and Citigroup Inc (NYSE:C) following post-recession lows in 2009. Thus many may be trying to play the bottom of European banks with the end of European Austerity.