Yet another executive is bailing on AMD (NYSE:
). Shares of the chip maker tumbled on Friday, capping off a bad
year for the company. Vice President Michael Goddard is the latest
senior employee to leave the company. Goddard left to join Korean
tech giant Samsung (OTC:
In July, Corporate VP of Business Development Bob Feldstein
resigned to accept an opportunity with NVIDIA (NYSE:
In September, Senior VP and CFO Thomas Seifert left the firm.
Seifert had also served as interim CEO after former CEO Dirk Meyer
walked away in January of 2011. Of important note is that Apple's
Tim Cook, Oracle's Mark Hurd and VMWare's Pat Gelsinger reportedly
declined the CEO opening at the time,
as noted by Computerworld
, perhaps indicating AMD's lackluster reputation in the
CIO Mike Wolfe and Corporate VP of R&D/Global Infrastructure
Services Trevor Schulze left the firm voluntarily in November.
Overall, at least 26 executives have left the firm in recent
according to All Things D
Still, the experts aren't abandoning AMD totally. Analyst
sentiment on the firm overwhelmingly favors holding this stock. Of
31 analysts, 22 have a "Hold" rating,
as noted by Yahoo Finance.
This despite the fact that Intel (NASDAQ: Intel) has vastly
outperformed the company in both sales and profit.
Still, investors may wish to shy away from this stock. In the
past year, it has declined nearly 60 percent, compared to a roughly
13 percent gain in the S&P 500 during that time. The company
also has a profit margin (or lack thereof) of nearly -15 percent,
suggesting that efficiency must be vastly improved to turn the
firm's fortunes around. After reaching a high of $8.35 per share in
March, the stock currently trades around $2.27.
One thing appears to be certain -- the immediate aftermath of
Goddard's departure has caused the stock to plunge even further. A
senior employee leaving every now and then isn't much cause for
concern, but the mass exodus at AMD raises bright red flags in
every direction. Sure, any time a new CEO takes the helm, as
occurred with AMD in 2011, reorganizations and increased turnover
are likely. However, the number of departures at AMD may signal a
lack of faith in the direction the company is heading -- not a good
sign for investors.
(c) 2012 Benzinga.com. Benzinga does not provide investment advice.
All rights reserved.
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