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RTEC, MKSI, COHU, BRKS, UTEK, TSRA, Electronics Manufacturing Stocks Undervalued

^{Published on 2011-08-04 07:21:19 - WOPRAI}
 

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. RUDOLPH TECHNOLOGIES INC (NASDAQ:RTEC), MKS INSTRUMENTS INC (NASDAQ:MKSI), COHU INC (NASDAQ:COHU), BROOKS AUTOMATION INC (NASDAQ:BRKS), ULTRATECH INC (NASDAQ:UTEK), TESSERA TECHNOLOGIES INC (NASDAQ:TSRA) 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               
     RTEC       RUDOLPH TECHNOLOGIES INC            8.69           16.13          46.10% Undervalued          Electronics Manufacturing
     MKSI       MKS INSTRUMENTS INC                 24.79          26.3           5.70% Undervalued           Electronics Manufacturing
     COHU       COHU INC                            12.54          18.41          31.90% Undervalued          Electronics Manufacturing
     BRKS       BROOKS AUTOMATION INC               9.2            14.2           35.20% Undervalued          Electronics Manufacturing
     UTEK       ULTRATECH INC                       25.36          30.91          18.00% Undervalued          Electronics Manufacturing
     TSRA       TESSERA TECHNOLOGIES INC            15.5           22.83          32.10% 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.

RUDOLPH TECHNOLOGIES INC (NASDAQ:RTEC) - Rudolph Technologies, Inc. engages in the design, development, manufacture, and support of process control metrology, defect inspection, and data analysis systems used by semiconductor device manufacturers worldwide. It offers yield management solutions used in wafer processing and final manufacturing through a family of standalone systems and integrated modules for transparent and opaque thin film measurements and macro-defect inspection. The companys products include metrology system, which is a production-oriented microprocessor-controlled ellipsometer for thin transparent film measurements; inspection systems to monitor process steps and gather process-enhancing information; and data analysis and review systems, which comprise software solutions for process management and data review. It also offers probe card metrology and wafer probe process monitoring equipment. The companys products have applications in the areas of diffusion, etch, lithography, CVD, PVD, CMP, and macro-defect detection and classification. Rudolph Technologies markets and sells its products to logic, memory, data storage, and application specific integrated circuit device manufacturers. The company was founded in 1940 and is based in Flanders, New Jersey.

MKS INSTRUMENTS INC (NASDAQ:MKSI) - MKS Instruments, Inc., together with its subsidiaries, provides instruments, subsystems, and process control solutions that measure, control, power, monitor, and analyze parameters of manufacturing processes worldwide. It offers various instruments and control systems, including pressure measurement and control, materials delivery, gas composition analysis, electrostatic charge management, and control and information technology products. The company also provides power and reactive gas products, such as power delivery, reactive gas generation, processing thin films, and equipment cleaning products. In addition, it offers vacuum technology products comprising vacuum containment components, vacuum gauges, vacuum valves, effluent management subsystems and custom stainless steel chambers, vessels, and biopharmaceutical process equipment hardware and housings. Further, MKS Instruments provide maintenance and repair services, software maintenance, and installation services and training. The companys products are used in semiconductor processing steps, such as depositing thin films of material onto silicon wafer substrates, and etching and cleaning circuit patterns; manufacture of flat panel displays, data storage media, solar cells, and other coatings, including architectural glass; energy generation and environmental monitoring processes, such as nuclear fuel processing, fuel cell research, greenhouse gas monitoring, and chemical agent detection; medical instrument sterilization; consumable medical supply manufacturing; and biopharm applications. It serves semiconductor capital equipment and semiconductor devices, thin film capital equipment, industrial, medical, energy generation, environmental monitoring, and manufacturing companies, as well as university, government, and industrial research laboratories. The company was founded in 1961 and is headquartered in Andover, Massachusetts.

COHU INC (NASDAQ:COHU) - Cohu, Inc. engages in the development, manufacture, sale, and servicing of test handling and burn-in related equipment, and thermal sub-systems for the semiconductor industry worldwide. The company operates in three segments: Semiconductor Equipment, Microwave Communication Systems, and Video Cameras. The Semiconductor Equipment segment develops, manufactures, and sells pick-and-place semiconductor test handlers, burn-in related equipment, and thermal sub-systems to semiconductor manufacturers and semiconductor test subcontractors. It also develops, manufactures, and sells gravity-feed and test-in-strip semiconductor test handling equipment used in final test operations. The Microwave Communication Systems segment develops, manufactures, and sells microwave communications equipment, antenna systems, and associated equipment, which are used in the transmission of video, audio, and telemetry. These products have applications in unmanned aerial vehicles, law enforcement, security and surveillance, and electronic news gathering. Its customers include government agencies, law enforcement and public safety organizations, unmanned air vehicle program contractors, television broadcasters, entertainment companies, professional sports teams, and other commercial entities. The Video Cameras segment develops, manufactures, and sells closed circuit video or CCTV cameras, equipment, and systems. It also offers accessories, which include monitors, lenses, and camera test equipment. This segments customers include traffic control and management, scientific imaging, security/surveillance, and machine vision. Cohu markets its products through direct sales force and independent sales representatives. The company was formerly known as Cohu Electronics, Inc. and changed its name to Cohu, Inc. in 1972. Cohu, Inc. was founded in 1947 and is based in Poway, California.

BROOKS AUTOMATION INC (NASDAQ:BRKS) - Brooks Automation, Inc. provides automation, vacuum, and instrumentation solutions primarily to the semiconductor manufacturing industry worldwide. It operates in three segments: Critical Solutions Group, Systems Solutions Group, and Global Customer Operations. The Critical Solutions Group segment provides various products, including robots and robotic modules for atmospheric and vacuum applications; cryogenic vacuum pumping systems; thermal management; and vacuum measurement solutions to create, measure, and control critical process vacuum applications. The Systems Solutions Group segment provides a range of products, and engineering and manufacturing services that enable the companys customers to develop and source process tools for semiconductor market applications, as well as manufactures products based on a customer specified design. The Global Customer Operations segment provides support services, including on and off-site repair services, on and off-site diagnostic support services, and installation services. This segment also provides services and spare parts for the companys automated material handling systems product line. Brooks Automation also serves customers in data storage, advanced display, analytical instruments, and solar markets. The company was founded in 1978 and is headquartered in Chelmsford, Massachusetts.

ULTRATECH INC (NASDAQ:UTEK) - Ultratech, Inc. develops, manufactures, and markets photolithography and laser thermal processing equipment. It supplies step-and-repeat photolithography systems based on one-to-one imaging technology to semiconductor device manufacturers for applications involving line geometries of 0.75 microns or greater and to nanotechnology manufacturers. The companys steppers are also used to manufacture semiconductors that are used in various applications, such as telecommunications, automotive control systems, power systems, and consumer electronics. It also offers LSA100, a laser-based thermal annealing tool used by the semiconductor industry for various process steps, including activation of implanted impurities, dielectric film formation, formation of silicides, and stabilization of copper grain structures. Ultratech sells its systems to semiconductor, advanced packaging, high-brightness light emitting diodes, thin film head, and various other nanotechnology manufacturers located throughout North America, Europe, Japan, Taiwan, and the rest of Asia. The company was founded in 1979 and is headquartered in San Jose, California.

TESSERA TECHNOLOGIES INC (NASDAQ:TSRA) - Tessera Technologies Inc. develops and licenses miniaturization technologies for chip-scale, multichip, and wafer-level packaging, which enables companies to produce chips for digital audio players, digital cameras, personal computers, personal digital assistants, video game consoles, and mobile phones. The 17-year-old company also manufactures wafer optics in small volumes. Its related services run from engineering (such as customized package design, modeling, simulation, failure analysis, and reliability testing) to assembly (training and consulting to help semiconductor assemblers keep assembly lines up to date) and infrastructure (evaluation, qualification, cost reduction, and cost analysis for companies that supply equipment and materials to chipmakers). Customers include chipmakers and assemblers, system manufacturers, electronic manufacturing service companies, and government agencies and their contractors. Tessera is based in San Jose, Calif.

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