ENTG, ACLS, SPIL, Electronics Manufacturing Stocks Undervalued
August 4, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Electronics Manufacturing sector and these stocks are the most undervalued as of today. ENTEGRIS, INC. (NASDAQ:ENTG), AXCELIS TECHNOLOGIES INC (NASDAQ:ACLS), SILICONWARE PRECISION-SP ADR (NASDAQ:SPIL) 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 ENTG ENTEGRIS, INC. 8.36 10.31 18.90% Undervalued Electronics Manufacturing ACLS AXCELIS TECHNOLOGIES INC 1.54 4.93 68.80% Undervalued Electronics Manufacturing SPIL SILICONWARE PRECISION-SP ADR 4.8 6.12 21.60% Undervalued Electronics Manufacturing
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.
ENTEGRIS, INC. (NASDAQ:ENTG) - Entegris, Inc. develops, manufactures, and supplies products and materials used in processing and manufacturing in the semiconductor and other high-technology industries worldwide. It operates in three segments: Contamination Control Solutions, Microenvironments, and Specialty Materials. The Contamination Control Solutions segment offers liquid filtration products, components and systems, and gas filtration products that purify, monitor, and deliver critical liquids and gases to the semiconductor manufacturing process. The Microenvironments segment provides wafer and reticle handling products, wafer shipping products, and data storage products, which preserve the integrity of wafers, reticles, and electronic components at various stages of transport, processing, and storage. The Specialty Materials segment offers poco graphite products and specialty coating products that provide low-temperature and plasma-enhanced chemical vapor deposition coatings of critical components of semiconductor manufacturing equipment used in various stages of the manufacturing process. The company sells its products primarily through direct sales force, and strategic and independent distributors to integrated circuit device manufacturers, original equipment manufacturers (OEM), gas and chemical manufacturing companies, and high-precision electronics manufacturers; and electrical discharge machining customers, glass container manufacturers, aerospace manufacturers, and biomedical implantation device manufacturers, as well as flat panel display OEMs, materials suppliers, and end users. Entegris, Inc. was founded in 1966 and is based in Billerica, Massachusetts.
AXCELIS TECHNOLOGIES INC (NASDAQ:ACLS) - Axcelis Technologies, Inc. designs, manufactures, and services ion implantation, dry strip, and other processing equipment used in the fabrication of semiconductor chips in the United States, Europe, and the Asia Pacific. Its products include a line of high energy, high current, and medium current ion implanters for various applications; and a line of single wafer implanters, known as the Optima platform, comprising the Optima HD, the Optima XE, and the Optima MD. The company also offers dry strip tools, including the Integra RS, which comprises paired-chamber process modules. In addition, it provides aftermarket services and support, including spare parts, equipment upgrades, maintenance services, and customer training. The company sells its equipment and services through direct sales force, distributors, and manufacturing representatives. Axcelis Technologies was founded in 1995 and is headquartered in Beverly, Massachusetts.
SILICONWARE PRECISION-SP ADR (NASDAQ:SPIL) - Siliconware Precision Industries Co., Ltd. provides semiconductor packaging and testing services worldwide. The company offers integrated circuit packaging and testing solutions, including design consultations, modeling and simulations, wafer bumping, wafer probe and sort, package assembly, final test, burn-in, and drop shipment. Its products include advanced leadframe and substrate packages, which are used in personal computers, communications, Internet appliances, cellular phones, digital cameras, cable modems, personal digital assistants, and LCD monitors. The company also provides services and support to design houses, integrated device manufacturers, and wafer foundries. Siliconware Precision Industries Co., Ltd. was founded in 1984 and is headquartered in Taichung, Taiwan.
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