KEM, NVMI, PRX, AVY, AAWW, UBS, Electronic Stocks Undervalued
April 27, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Electronic sector and these stocks are the most undervalued as of today. KEMET CORP (NYSE:KEM), Nova Measuring Instruments Ltd. - Ordinary Shares (NASDAQ:NVMI), PAR PHARMACEUTICAL COS INC (NYSE:PRX), AVERY DENNISON CORP (NYSE:AVY), ATLAS AIR WORLDWIDE HOLDINGS (NASDAQ:AAWW), UBS AG-REG (NYSE:UBS) are all expected to go Up as they are Undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.
The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:
Symbol Company Name Last Close Fair Value Valuation Industry KEM KEMET CORP $15.84 $20.57 23.00% Undervalued Electronic NVMI Nova Measuring Instruments Ltd. - Ordinary Shares $10.26 $13.19 22.20% Undervalued Electronic PRX PAR PHARMACEUTICAL COS INC $34.06 $43.76 22.20% Undervalued Drug AVY AVERY DENNISON CORP $43.11 $54.85 21.40% Undervalued Office AAWW ATLAS AIR WORLDWIDE HOLDINGS $67.34 $85.49 21.20% Undervalued Transportation UBS UBS AG-REG $19.74 $25.06 21.20% Undervalued Bank
Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.
Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.
KEMET CORP (NYSE:KEM) - KEMET Corporation, together with its subsidiaries, manufactures and sells capacitors worldwide. The company offers tantalum, multilayer ceramic, solid and electrolytic aluminum, film, and paper capacitors. Its products are used in audio systems, tire pressure monitoring systems, power train electronics, instrumentation, airbag systems, anti-lock braking systems, electronic engine controls, air conditioning controls, and security systems in the automotive industry; copiers, point-of-sale terminals, and fax machines in business equipment industry; and cellular phones, telephones, switching equipment, relays, base stations, and wireless infrastructure in the communications industry. KEMETs products are also used in personal computers, workstations, mainframes, computer peripheral equipment, power supplies, disk drives, printers, and local area networks in the computer-related industry; electronic controls, measurement equipment, instrumentation, solar and wind energy generation, and medical electronics in the industrial sector; and DVD players, MP3 players, game consoles, LCD televisions, global positioning systems, and digital still cameras in the consumer industry. In addition, the companys products are used in avionics, radar, guidance systems, and satellite communications in the military/aerospace; and wind generation systems, solar generation systems, geothermal generation systems, tidal generation systems, and electric drive vehicles in the alternative energy industry. It supplies its products to electronics original equipment manufacturers, electronics manufacturing service providers, and electronics distributors. KEMET Corporation was founded in 1919 and is headquartered in Simpsonville, South Carolina.
Nova Measuring Instruments Ltd. - Ordinary Shares (NASDAQ:NVMI) - Nova Measuring Instruments Ltd. (Nova), incorporated in May 1993, is a designer, developer and producer of integrated process control metrology systems used in the manufacture of semiconductors. Nova also designs, manufactures and produces stand-alone process control metrology systems. The Company supplies its metrology systems to major semiconductor manufacturers worldwide, either directly or through process equipment manufacturers. Users of the Company's systems include Intel, Samsung, TSMC, UMC, IBM, AMD and Micron Technology. Process equipment manufacturers that purchase Nova's metrology systems include Applied Materials, Ebara, Novellus and Lam Research.
The Company's integrated metrology systems provide semiconductor manufacturers with process control by measuring wafers and their properties without removing the wafer from the process equipment. Nova's products use its measuring methods that enable the Company to produce optical measuring systems that are small enough to be incorporated directly inside many types of equipment used in semiconductor processing. Integrated systems measure the wafer within the actual process environment, reducing labor and wafer handling, as well as the risk of contamination of or damage to the wafer.
Nova provides its customers with integrated process control solutions by offering systems that meet thin film measurement needs in critical applications in the fabrication process. The Company's integrated process control platform can be deployed to multiple processes and applications of semiconductor manufacturing.
Thin Film Process Control
The NovaScan 840 combines high-speed measurement, enabling measurement of wafers both before and after polishing. While the Company no longer markets this system, this system and prior generations used to be Nova's main revenue source.
The NovaScan 2020 and 2040 are the second generation of integrated thickness monitoring systems with enhanced spectral range, responding to the needs of the industry for emerging chemical mechanical polishing high-end applications of thin films and complex layer stacks.
The NovaScan 3030 and 3060 are the second generation of the 300-millimeter measuring system, with improved optics and motion system enabling high-speed measurement, and with broad spectral rage (ultraviolet to infrared) allowing accurate measurements on complex structures and thin film layers. The NovaScan 3060 integrated film thickness 300-millimeter measurement system was introduced during the year ended December 31, 2002.
The NovaScan 2020Cu has the same basic platform as the NovaScan 2040, with additional hardware and software improvements, enabling the system to answer the requirements of copper chemical mechanical polishing monitoring. The system went through several beta tests and was released for sale during the year ended December 31, 2003.
The NovaScan 3030Cu has same basic platform as the NovaScan 3030, with additional hardware and software improvements, enabling the system to answer the requirements of 300-millimeter copper CMP monitoring. The system was released for sale in 2003.
A closed loop control option for the NovaScan systems delivers highly automated wafer-to-wafer uniformity over chemical mechanical polishing manufacturing processes. The thickness data of every processed wafer is obtained and process parameters are fed back to adjust the next wafer polish.
NovaNet is a sophisticated computer network, connecting all NovaScan systems on a factory floor. The network is managed by a server, running with software developed by Nova, and insuring safe recipe distribution and recipe integrity across the factory. The NovaNet also includes a report generator that allows the creation of reports from all the systems connected and allows programmable cross sections.
The NovaScan 840CVD system is a 200-millimeter integrated metrology vacuum chemical vapor deposition measurement system, measuring different layers in the chemical vapor deposition process. Data can be fed forward to the chemical mechanical polishing
PAR PHARMACEUTICAL COS INC (NYSE:PRX) - Par Pharmaceutical Companies, Inc., through its subsidiary, Par Pharmaceutical, Inc. engages in the development, manufacture, and distribution of generic and branded drugs in the United States. Its principal generic products include Metoprolol succinate ER, Sumatriptan succinate injection, Meclizine Hydrochloride, Clonidine TDS, Dronabinol, Cabergoline, Propranolol HCl ER, Cholestyramine Powder, Methimazole, Megestrol oral suspension, Tramadol HCl and acetaminophen tablets, Fluticasone, Ibuprofen Rx, and various amoxicillin products. The company offers its drugs in solid oral dosage forms, such as tablets, caplets, and two-piece hard-shell capsules; oral suspension products; nasal spray products; products delivered by injection; and products in the semi-solid form of a cream and a transdermal patch. Its brand products include Megace ES drugs for the treatment of anorexia, cachexia, or any unexplained significant weight loss in patients with a diagnosis of AIDS; Nascobal Nasal Spray, a prescription vitamin B12 treatment indicated for maintenance of remission in certain pernicious anemia patients, as well as a supplement for various B12 deficiencies; and Androgel, a testosterone gel indicated for replacement therapy in males for conditions associated with a deficiency or absence of endogenous testosterone. Par Pharmaceutical plans to launch Zuplenz, an oral soluble thin film formulation for the prevention of chemotherapy induced nausea and vomiting, and post-operative nausea and vomiting; and Oravig, a miconozole antifungal therapy for the treatment of oropharyngeal candidiasis. It markets its products to wholesalers, drug store chains, supermarket chains, mass merchandisers, distributors, managed health care organizations, mail order accounts, drug distributors, nursing homes, hospitals, clinics, government agencies, and pharmacy benefit management companies. The company was founded in 1978 and is based in Woodcliff Lake, New Jersey.
AVERY DENNISON CORP (NYSE:AVY) - Avery Dennison Corporation produces pressure-sensitive materials, office products, tickets, tags, labels, and other converted products. The company operates in three segments: Pressure-sensitive Materials, Retail Information Services, and Office and Consumer Products. The Pressure-sensitive Materials segment manufactures and sells papers, plastic films, metal foils, and fabrics to label printers and converters; and graphics and graphic films, which consist of films and other products to the architectural, commercial sign, digital printing, and other related markets. It also sells durable cast and reflective films to the construction, automotive, and fleet transportation markets, scrim-reinforced vinyl material for banner sign applications, and reflective films for traffic and safety applications; and performance polymer products that include a range of solvent- and emulsion-based acrylic polymer adhesives, protective coatings, and other polymer additives. The Retail Information Services segment designs, manufactures, and sells brand identification products that include woven and printed labels, graphic tags, and barcode tags; information management products, which consist of price tickets, carton labels, RFID tags, and printing applications; and solution enabling products that include barcode printers, molded plastic fastening and application devices, and security management products. The Office and Consumer Products segment manufactures and sells products for office, school, and home uses, such as copiers, laser printer labels, related computer software, ink-jet and laser printer card, and index products. It also offers stationery products, including writing instruments, markers, adhesives, and specialty products. The company was formerly known as Avery International Corporation and changed its name to Avery Dennison Corporation in 1990. Avery Dennison Corporation was founded in 1935 and is headquartered in Pasadena, California.
ATLAS AIR WORLDWIDE HOLDINGS (NASDAQ:AAWW) - Atlas Air Worldwide Holdings, Inc. provides air cargo and outsourced aircraft operating solutions worldwide. The company operates through four segments: Aircraft, Crew, Maintenance, and Insurance (ACMI); Air Mobility Command (AMC) Charter; Commercial Charter; and Dry Leasing. The ACMI segment offers aircraft that is crewed, maintained, and insured by the company for lease. The AMC Charter segment provides full planeload charter flights to the U.S. military. The Commercial Charter segment provides planeload of capacity charter services to charter brokers, freight forwarders, direct shippers, and airlines. The Dry Leasing segment provides for the leasing of aircraft and/or engines to customers. The company operates a fleet of Boeing 747 freighters. Its customers include airlines, express delivery providers, freight forwarders, the U.S. military, and charter brokers. It operates in Asia, the Middle-East, Australia, Europe, South America, Africa, and North America. As of December 31, 2009, the company operated a fleet of 747-400 freighter aircraft. Atlas Air Worldwide Holdings was founded in 1992 and is based in Purchase, New York.
UBS AG-REG (NYSE:UBS) - UBS AG, a financial services firm, provides wealth management, asset management, and investment banking services to private, corporate, and institutional clients worldwide. The company also involves in retail and commercial banking in Switzerland. Its Wealth Management & Swiss Bank divisions wealth management business caters to high net worth individuals worldwide (except the Americas) whether they are investing internationally or in their home country. This division offers these clients a range of tailored advice and investment services. Its Swiss Bank business provides a set of banking services for Swiss individual and corporate clients. The companys Wealth Management Americas division offers products and services specifically designed to address the needs of high net worth and ultra high net worth individuals, and families. It includes Wealth Management U.S., domestic Canada, and the international business booked in the United States. UBS AGs Global Asset Management division provides investment solutions to financial intermediaries and institutional clients worldwide. It offers investment capabilities across various traditional and alternative asset classes, including equity, fixed income, currency, hedge fund, real estate, infrastructure, and private equity investment capabilities that could also be combined in multi-asset strategies. The companys Investment Bank division provides securities products and research in equities, fixed income, rates, foreign exchange, and metals. It also offers advisory services, as well as access to the worlds capital markets for corporate, institutional, intermediary, and alternative asset management clients. UBS AG operates in approximately 50 countries. The company was founded in 1862 and is based in Zurich, Switzerland.
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