KYO, DDIC, MFLX, CTS, PANL, SIHI, Electronics - Misc Stocks Undervalued
August 4, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Electronics - Misc sector and these stocks are the most undervalued as of today. KYOCERA CORP -SPONS ADR (NYSE:KYO), DDI CORP (NASDAQ:DDIC), MULTI-FINELINE ELECTRONIX IN (NASDAQ:MFLX), CTS CORP (NYSE:CTS), UNIVERSAL DISPLAY CORP (NASDAQ:PANL), SINOHUB INC (AMEX:SIHI) 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 KYO KYOCERA CORP -SPONS ADR 104.45 109.39 4.50% Undervalued Electronics - Misc DDIC DDI CORP 8.45 13.97 39.50% Undervalued Electronics - Misc MFLX MULTI-FINELINE ELECTRONIX IN 19.97 24.44 18.30% Undervalued Electronics - Misc CTS CTS CORP 9.9 12.8 22.70% Undervalued Electronics - Misc PANL UNIVERSAL DISPLAY CORP 28.52 46.04 38.10% Undervalued Electronics - Misc SIHI SINOHUB INC 1.07 2.49 57.00% Undervalued Electronics - Misc
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.
KYOCERA CORP -SPONS ADR (NYSE:KYO) - Kyocera Corporation provides fine ceramic components, electronic devices, and equipment to individuals, corporations, governments, and governmental agencies worldwide. Its Fine Ceramic Parts segment offers information and telecommunication components, sapphire substrates, components for semiconductor processing equipment, components for liquid crystal display (LCD) manufacturing equipment, automotive components, and industrial ceramic components. The companys Semiconductor Parts segment provides ceramic packages for crystal and SAW devices, CCD/CMOS sensor and LSI ceramic packages, wireless communication device packages, optical communication device packages and components, and organic multilayer packages and substrates. Its Applied Ceramic Products segment offers residential and industrial solar power generating systems, solar cells and modules, cutting tools, micro drills, medical and dental implants, and jewelry and fine ceramic application products. The companys Electronic Device segment provides ceramic and tantalum capacitors, SAW devices, RF modules, EMI filters, timing devices, connectors, thermal and inkjet printheads, amorphous silicon photoreceptor drums, and LCDs. Its Telecommunications Equipment segment offers CDMA mobile phone handsets, personal handy phone system related products, and wireless broadband systems. The companys Information Equipment segment provides ECOSYS printers, and multifunctional peripherals and systems; and managed print services. Its Others segment engages in telecommunications engineering, data center, management consulting, and real estate businesses; and integration business on information systems and network infrastructures, as well as offers chemical materials for electronic components, electrical insulators, and molded products. The company was formerly known as Kyoto Ceramic Kabushiki Kaisha and changed its name to Kyocera Corporation in 1982. Kyocera Corporation was founded in 1959 and is headquartered in Kyoto, Japan.
DDI CORP (NASDAQ:DDIC) - DDi Corp., together with its subsidiaries, provides printed circuit board (PCB) engineering and manufacturing services primarily in North America. It offers multi-layer PCB prototype, design, engineering, and manufacturing services. The company also provides pre-production and production fabrication services. In addition, it supports customer requirements for a transition to higher volume needs. The company offers its products and services to various market sectors, including communications, computing, military/aerospace, industrial electronics, instrumentation, medical, and high-durability commercial markets. It markets its products through an internal sales force and manufacturers representatives. The company was founded in 1978 and is headquartered in Anaheim, California.
MULTI-FINELINE ELECTRONIX IN (NASDAQ:MFLX) - Multi-Fineline Electronix, Inc. engages in the engineering, design, and manufacture of flexible printed circuit boards and related component assemblies for the electronics industry. The companys products are used in feature phones, smart phones, consumer electronic devices, portable bar code scanners, computer/storage devices, and medical devices. It sells its products primarily through its design and application engineers. Multi-Fineline Electronix serves original equipment manufacturers, electronic manufacturing service providers, and display manufacturers. It operates primarily in the United States, China, Singapore, Malaysia, and the United Kingdom. The company was founded in 1984 and is headquartered in Anaheim, California. Multi-Fineline Electronix, Inc. is a subsidiary of WBL Corporation Limited.
CTS CORP (NYSE:CTS) - CTS Corporation engages in the design, manufacture, assembly, and sale of electronic components and sensors, as well as the provision of electronics manufacturing services worldwide. It operates in two segments, Electronics Manufacturing Services, and Components and Sensors. The Electronics Manufacturing Services segment involves in the assembly of electronic and mechanical components into a finished subassembly or assembly, as well as provides manufacturing and completion services, including design, bill-of-material management, logistics, and repair services. This segment sells its products to the communications, computer, medical, industrial, and defense and aerospace original equipment manufacturer (OEM) markets, as well as to OEM customers in consumer electronics, instruments and controls, and networking areas. The Components and Sensors segment offers automotive sensors and actuators used in commercial or consumer vehicles; electronic components used in communications infrastructure and computer markets; components used in computer and other high-speed applications, switches, resistor networks, and potentiometers; and fabricated piezoelectric materials and substrates used primarily in medical, industrial, and defense and aerospace markets. CTS Corporation sells its products through sales engineers, independent manufacturers representatives, and distributors. The company was founded in 1896 and is based in Elkhart, Indiana.
UNIVERSAL DISPLAY CORP (NASDAQ:PANL) - Universal Display Corporation engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in flat panel display, solid-state lighting, and other product applications. It owns exclusive license or has the sole right to sublicense approximately 1,000 patents issued and pending worldwide. The company licenses and supplies its proprietary UniversalPHOLED phosphorescent OLED technologies and materials to display manufacturers and others. It also involves in the research, development, and commercialization of other OLED device and manufacturing technologies, including TOLED, which are transparent OLEDs for the fabrication of OLEDs that have transparent cathodes; FOLED that are flexible OLEDs for the fabrication of OLEDs on flexible substrates; OVPD, an organic vapor phase deposition process; UniversalP2OLED, which are printable phosphorescent OLEDs; and OVJP that is an organic vapor jet printing technology. In addition, the company provides technical assistance and support to third parties for the commercialization of their OLED products. Universal Display Corporation has strategic relationships with Samsung Mobile Display Co., Ltd.; LG Display Co., Ltd.; AU Optronics Corporation; Sony Corporation; Chimei Innolux Corporation; Tohoku Pioneer Corporation; Moser Baer Technologies, Inc.; Konica Minolta Holdings, Inc.; Denko K.K.; LG Chem, Ltd.; Panasonic Electric Works Co., Ltd.; NEC Lighting, Ltd.; Seiko Epson Corporation; and DuPont Displays, Inc. The company was founded in 1985 and is based in Ewing, New Jersey.
SINOHUB INC (AMEX:SIHI) - SinoHub, Inc. operates as an electronics company that engages in manufacturing and distributing custom design, private-label mobile phones (VCM - Virtual Contract Manufacturing) worldwide. The company also provides electronic component purchasing (ECP) services to manufacturers and design houses in China, as well as supply chain management (SCM) services, offering logistics, warehousing, importing, and distribution services to companies operating in China. SinoHub holds the database of approximately 50,000 different electronic components, in combination with its long term industry relationships. Through its relationships with design houses that were formed through the SCM and ECP businesses, the company gets access to the mobile phone roadmaps from approximately 20 design houses in China, and SinoHub uses this information anonymously in its custom design mobile phone business to provide strategic support to customers, including mobile phone distributors and operators. Its ECP business engages in procurement-fulfillment and spot electronic component sales to manufacturers and design houses. The company offers SinoHub SCM, a proprietary platform based on its Web-based software system that provides order entry, automated price and category checking, order tracking and monitoring, inventory management, payment system, finished orders database, executive dashboard reporting system, shipment tracking, bonded inventory control system, vendor managed inventory, and VAT tracking for recovery on export of finished goods. SinoHub, Inc. was founded in 2000 and is headquartered in Shenzhen, China.
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