In a recent Penny Stock Detectives article, editor Sasha Cekerevac argues that the recent market consolidation has impacted many sectors, including the semiconductor industry, as economists predict a slowdown. He points out that, while a selloff in some stocks was warranted, other technology stocks are oversold. Cekerevac believes that one interesting semiconductor stock is forecasting a strong second half to 2012, which the market is ignoring.
According to Cekerevac's article, Amkor Technology provides semiconductor packaging and test services on an outsourced basis for larger firms. Amkor's clients include some of the leading technology stocks, such as IBM, Sony and Altera.
The market consolidation in the stock of Amkor came on the heels of the latest quarterly report on earnings for the first quarter, says Cekerevac. The firm had revenue of $655 million, compared to $665 million the year before. Net income was down to $11.8 million from $25.1 million year before, according to the editor.
A large number of technology stocks were impacted negatively due to the flooding in Thailand last year, notes Cekerevac. The semiconductor industry has major facilities in Thailand and a lot of technology stocks were not able to produce their products, including Amkor. The president and CEO Ken Joyce, however, believes that a normal business cycle will ensue going forward. According to Cekerevac, the company expects second-quarter revenue to be between $670 million $700 million, with estimates of net income between $17.0 million $36.0 million.
In a recent press release, Joyce said: "First quarter results came in at the high end of our expectations." He also mentioned that the firm's strong position in wireless communication will be a strong driver going forward over the next several quarters. Amkor estimates that the second half of 2012 will be quite strong, as the company is receiving higher orders from makers of tablets and smartphones.
In Cekerevac's opinion, what makes the company even more compelling is that Amkor has authorization to buy back $300 million worth of stock, of which only $133 million has been purchased.
As reported by Cekerevac, Amkor trades at a forward price-to-earnings ratio of 5.21, a price/earnings to growth ratio of 0.66 and the price-to-book of just over one. When the market is in a selling mode, it throws everything out the window, including the quality companies. Amkor is one such quality firm, believes Cekerevac.
Published every business day, Penny Stock Detectives researches and analyzes low-priced opportunities in the stock market and individual stock market sectors. Penny Stock Detectives reports on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $10, and the stock market in general.
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Sasha Cekerevac, BA, and Danny Esposito, B. Comm., lead editorial stock analysts at Penny Stock Detectives, in conjunction with stock market guru George Leong, B. Comm., have just updated their breakthrough video, If You Missed Apple, Shame on Us; If You Miss This... which highlights a company these stock analysts believe looks very similar to Apple Inc. in its early days. To see the video, visit: http://www.pennystockdetectives.com/video/pt/index.php?sb=PRESS.
Read the full story at http://www.prweb.com/releases/2012/5/prweb9528834.htm