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A clickbait headline if you have ever seen one. Sure, it's the biggest percentage loss, but then of course AMD rose four fold in the last year or so. AMD on Ma

A clickbait headline if you have ever seen one. Sure, it's the biggest percentage loss, but then of course AMD rose four fold in the last year or so. AMD on May 3, 2016: 3.7 AMD on May 1, 2017: 13.6 AMD on close May 2, 2017: 10.32 It's still more than double, this is just the natural correction after all the hype. And since they went 4x in a period of 1 year where .. nothing .. really happened (until Ryzen very very recently) there was a lot of fluff.

Cyph0n 9y ago
I honestly regret not buying some AMD stock a few years back, even though I was confident that it wouldn't be abandoned after the Mubadala acquisition. Just like I regret not buying BTC when it was I first heard about it (~$6/BTC). Oh well haha :P
- cortesoft 9y ago
  Well, obviously you remember the times you passed on buying something that turned out to be worth a lot... there are probably lots of times you passed on buying something that turned out to be worth nothing.
  - Cyph0n 9y ago
    Definitely! I'm completely fine with it though. It's not something I lose sleep over, just a little itch is all.
bbcbasic 9y ago
Riddle: if I purchased on May 3 2016 I'd be worse off selling on May 1 2017 than holding. Why?
- cortesoft 9y ago
  Long term capital gains vs short term?
  - wahern 9y ago
    Doesn't compute. You're only taxed on the _gain_, which means as long as your selling price is greater than your purchase price then, ignoring inflation, commissions, etc, you're always ahead as long as the tax rate is less than 100%. Anyhow, the closing price on May 3, 2016 was $3.60. The closing price on May 1, 2016 was $13.30. Even if the entire sale price was taxed, and assuming you're already fairly wealthy, you'd need a marginal tax rate of well over 50%. The top marginal federal income tax rate is %39.6; the top state marginal income tax is 13.3%. Even a 53% tax on the total sale price wouldn't cause you to lose money.
    - darawk 9y ago
      While true, you are taxed at different rates for different holding periods. If you hold for < 1 year, that is a short term capital gain, and is taxed at your ordinary income rate (~35%, let's say). If you hold for > 1 year, your gain is taxed at 15%.
      - wahern 9y ago
        Sure. But there's always a gain, regardless. The riddle was why would you be worse off holding rather than selling. Anyhow, if we grant the riddle was poorly worded, that the implication was waiting an additional day you're be better off, it's still technically incorrect. The clock starts ticking the day after the purchase, and you have to hold for a year and a day. If you purchase on May 3 2016 you shouldn't sell before May 5 2017. Possibly May 4 or even May 3 if I'm misunderstanding something, but almost certainly not May 2.
        darawk 9y ago
        > Sure. But there's always a gain, regardless. Not true. Suppose you buy a stock for $5 on Jan 1 2016. It rises to $20 on Jan 1 2016. If you sell on Jan 1, you make 15x.65 9.75. If you hold until Jan 2 and the price declines by $1 to $19, you make 14x.85=11.9. Hence, you're better off holding till the next day, even though the stock goes down.
    - 9y ago
aquadrop 9y ago
It's still 25% in a day. Yes, it shows disappointment and large correction from all the hype. Not that clickbaity.
synicalx 9y ago
Definitely not clickbait, this is a huge movement for any stock and it happened due to genuinely disappointing news from AMD

Cyph0n 9y ago

I honestly regret not buying some AMD stock a few years back, even though I was confident that it wouldn't be abandoned after the Mubadala acquisition. Just like I regret not buying BTC when it was I first heard about it (~$6/BTC). Oh well haha :P

cortesoft 9y ago
Well, obviously you remember the times you passed on buying something that turned out to be worth a lot... there are probably lots of times you passed on buying something that turned out to be worth nothing.
- Cyph0n 9y ago
  Definitely! I'm completely fine with it though. It's not something I lose sleep over, just a little itch is all.

bbcbasic 9y ago

Riddle: if I purchased on May 3 2016 I'd be worse off selling on May 1 2017 than holding. Why?

cortesoft 9y ago
Long term capital gains vs short term?
- wahern 9y ago
  Doesn't compute. You're only taxed on the _gain_, which means as long as your selling price is greater than your purchase price then, ignoring inflation, commissions, etc, you're always ahead as long as the tax rate is less than 100%. Anyhow, the closing price on May 3, 2016 was $3.60. The closing price on May 1, 2016 was $13.30. Even if the entire sale price was taxed, and assuming you're already fairly wealthy, you'd need a marginal tax rate of well over 50%. The top marginal federal income tax rate is %39.6; the top state marginal income tax is 13.3%. Even a 53% tax on the total sale price wouldn't cause you to lose money.
  - darawk 9y ago
    While true, you are taxed at different rates for different holding periods. If you hold for < 1 year, that is a short term capital gain, and is taxed at your ordinary income rate (~35%, let's say). If you hold for > 1 year, your gain is taxed at 15%.
    - wahern 9y ago
      Sure. But there's always a gain, regardless. The riddle was why would you be worse off holding rather than selling. Anyhow, if we grant the riddle was poorly worded, that the implication was waiting an additional day you're be better off, it's still technically incorrect. The clock starts ticking the day after the purchase, and you have to hold for a year and a day. If you purchase on May 3 2016 you shouldn't sell before May 5 2017. Possibly May 4 or even May 3 if I'm misunderstanding something, but almost certainly not May 2.
      - darawk 9y ago
        > Sure. But there's always a gain, regardless. Not true. Suppose you buy a stock for $5 on Jan 1 2016. It rises to $20 on Jan 1 2016. If you sell on Jan 1, you make 15x.65 9.75. If you hold until Jan 2 and the price declines by $1 to $19, you make 14x.85=11.9. Hence, you're better off holding till the next day, even though the stock goes down.
  - 9y ago

aquadrop 9y ago

It's still 25% in a day. Yes, it shows disappointment and large correction from all the hype. Not that clickbaity.

synicalx 9y ago

Definitely not clickbait, this is a huge movement for any stock and it happened due to genuinely disappointing news from AMD