The mean target price of $59.8 implies the required return for this stock is about 10%, $.27 earning this year, 1.317 next year and long term growth rate of 19%. CAPM sugguests rate of return of 21%.
Upward trend has yet to established and currently the stock is overbought. $59 is the resistant point and $40 is the support point for short term.
I shall consider to buy at a price below $45 and sell at a price above $53.
Lam Research Corporation, FEI Co (FEIC), Kulicke & Soffa (KLIC), Varian Semiconductor Equip Associates Inc., ULVAC technologies Inc.(not listed), Axcelis Technologies (2000 sales less than $1 billion),
The Company is the market leader in provision of equipments for FAB. They have strong products in deposition, ion implantation, CMP, etching.
Strong financial position, cash and short term capital is about $ 5 billion. Debt/Equity is 0.08.
Decisive management team managed the past two downturns in 1996 and 2001 very well.
Over half of its revenue is derived from outside US. It maintains good relationship with Taiwan foundries. Key customers include Intel, AMD, Motorola, TSMC, etc.
The business is greatly affected by the business cycle of semiconductors. Mild recovery in Semiconductors market and slow ramping of investment in 300 mm Fab will restrict the growth of its business.
15 minutes Delayed Quote