Posts for Ticker ‘KLAC’

The Twenty Companies That Wall St. Can Trust The Least

Wall St. likes financial statements that give it deep insights into a company’s operations, especially its liabilities. It likes boards that make sure shareholders get as complete a picture as possible of a firm’s balance sheet and details of its P&L, cash-flow, and other critical financial measurements.

bear24/7 Wall St. asked Audit Integrity to put together a list of companies traded on US exchanges with market caps of more than $3 billion that do particularly poorly in the areas  of corporate governance, detailed disclosure of high-risk events including M&A and restructurings, revenue and expense recognition, and asset and liability valuation.

Based on the Audit Integrity model, 24/7 created a list of the twenty companies that Wall St. can trust the least.  Among the companies that the analysis flagged are Altria (NYSE:MO), Chevron (NYSE:CVX), Credit Suisse (NYSE:CS), GE (NYSE:GE), Blackstone (NYSE:BX), Wal-Mart (NYSE:WMT),  Wells Fargo (NYSE:WMT), and Dow Chemical (NYSE:DOW)

The list:

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Posted on: October 27, 2009 – 5:31 am in Corporate Governance, Research, Uncategorized, , , , , , , , , , , , , , , , , , ,

Top Analyst Upgrades (BEN, KLAC, NVLS, LRCX, JWN, OSK, STX, WDC, S)

These are the top analyst upgrades and positive research calls from Wall Street this Monday morning with about two hours until the market opens:

Franklin Resources (BEN) Raised to Overweight at JPMorgan.
KLA-Tencor (KLAC), Novellus Systems (NVLS) and Lam Research (LRCX) were all three Raised to Neutral from Underperform at Credit Suisse.
Nordstrom (JWN) Raised to Neutral and off Conviction Sell List at Goldman Sachs.
Oshkosh (OSK) Raised to Buy at KeyBanc.
Seagate Tech (STX) Raised to Buy at BofA/Merrill.
Western Digital (WDC) Raised to Buy at BofA/Merrill.
Sprint (S) Raised to Buy at Auriga.

JON C. OGG

Posted on: July 6, 2009 – 6:35 am in Analyst Calls, , , , , , , , ,

KLA-Tencor Kills V-Bottom Chip Recovery Hopes (KLAC, AMAT, LRCX)

burning-money-pic41KLA-Tencor Corporation (NASDAQ: KLAC) is the second largest US-based semiconductor cap-ex stock by market cap, or at least out of the go-to universe we track with Applied Materials (NASDAQ: AMAT) ahead of it and Lam Research (NASDAQ: LRCX) behind it.  Last night, the company killed any hopes of a v-bottom recovery in orders for the sector revolving around capital expenditures in the semiconductor sector.  It also confirmed industry data from last week that further slowdowns were seen in orders.  The process control and yield management systems for semiconductor companies announced that it was further cutting 10% of its workforce.

The company said it is continuing in its efforts to control costs and to respond to depressed market conditions.  This round of cuts is in addition to a workforce reduction that was announced in November 2008. KLA is looking to eliminate quarterly non-GAAP operating expenses of $140-145 million by the end of calendar year 2009, adjusted from the company’s previously announced target of $165-170 million.

Despite prior cuts in operating costs, KLA said it must further cut operating expenses “in order to respond to the current demand environment.” The translation there is simple: semiconductor companies are not spending on more cap-ex. Other cost-cutting actions facilities consolidation (i.e. factory closings or lease terminations), additional forced time off (unpaid vacation) and a reduction in employee stock purchase plan benefits (lower benefits).

KLA-Tencor estimates charges of approximately $20 million to $30 million, including $18 to $22 million related to estimated severance costs.

Here is the sad thing… Analysts were already looking for a loss in this year (June-end).  They are now looking for losses next year.  It is possible that these job cuts will help to increase the bottom-line a year out after the charges have been absorbed.  But over the last 90-day period we have seen a drastic reduction in earnings expectations from analysts.  You can bet that the analysts take note this week with a recognition that companies never really announce another round of layoffs if they are expecting a rapid return of strong orders in a quarter or two.  If KLA-Tencor was expecting a sharp recovery it might furlough workers for a month or two, but that is not what KLA-Tencor signaled last night.

Shares closed down 6.5% Monday and have yet to offer any solid indications.  Its 52-week range is $14.81 to $47.07.

Jon C. Ogg
March 31, 2009

Posted on: March 31, 2009 – 6:16 am in Labor & Unions, Semiconductor, , ,

KLA-Tencor Follows Chips-To-Solar Move (KLAC, FSLR, WFR, AMAT)

solar-panel-pic6As long as silicon chips continue to pack more power into less space, the industry will need improved inspection devices to assist with quality control. Or at least that’s what KLA-Tencor Corporation (NASDAQ:KLAC) is counting on.  And now it appears that KLA expects solar and photovoltaic to be a new engine of growth.
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Posted on: March 4, 2009 – 9:53 am in Alternative Energy, Green Biz, Semiconductor, , , ,

Intel’s $7 Billion Gamble… Too Much? Too Soon? (INTC, AMD, NVDA, AMAT, KLAC, NVLS)

Intel Corporation (NASDAQ: INTC) is making a huge gamble on high- paying jobs and manufacturing.  It isn’t cuts.  Intel plans expansions for the inevitable recovery ahead.  $7 billion worth.
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Posted on: February 10, 2009 – 10:42 am in Labor & Unions, Semiconductor, , , , , , , , , ,

One Last Day of Chip Earnings (BRCM, IDTI, KLAC, MXIM, MCHP, PMCS, RMBS, VSEA)

Semiconductor_imageFor those who have felt that this earnings season was one of the more dismal moments for technology, today should mostly mark the end for the semiconductor companies and related stocks.  Not entirely, but mostly.  On deck after the close are Broadcom Corp. (NASDAQ: BRCM), Integrated Device Technology Inc. (NASDAQ: IDTI), KLA-Tencor Corporation (NASDAQ: KLAC), Maxim Integrated Products Inc. (NASDAQ: MXIM), Microchip Technology Inc. (NASDAQ: MCHP), PMC-Sierra Inc. (NASDAQ: PMCS), Rambus Inc. (NASDAQ: RMBS), and Varian Semiconductor Equipment Associates Inc. (NASDAQ: VSEA).

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Posted on: January 29, 2009 – 1:51 pm in Earnings, Semiconductor, , , , , , , ,

Analyst Downgrade Onslaught Continues (ASML, CMG, FORM, GFIG, ICE, KLAC, MSSR, MPEL, MRG, PEET, PRXI, PHM, RGLD, JAVA, TCK, TER, UDR, VNO)

Burning_money_pic_2This morning was a shocker on just how many analyst downgrades and very negative calls were out from Wall Street analysts.  The sad part is this is only part of the onslaught that we are still seeing.

  • ASML (NASDAQ: ASML) Cut to Market Perform at FBR.
  • Chipotle (NYSE: CMG) Cut to Neutral at Piper Jaffray.
  • FormFactor (NASDAQ: FORM) Cut to Market Perform at FBR.
  • GFI Group (NASDAQ: GFIG) Cut to Hold at Deutsche Bank.
  • IntercontinentalExchange (NYSE: ICE) Cut to Hold at Deutsche Bank.
  • KLA-Tencor (NASDAQ: KLAC) Cut to Market Perform at FBR.
  • McCormick & Schmick’s (NASDAQ: MSSR) Cut to Neutral at Piper Jaffray.
  • Melco Crown (NASDAQ: MPEL) Cut to Hold at Deutsche Bank.
  • Morton’s Restaurant Group (NYSE: MRG) Cut to Neutral at Piper Jaffray.
  • Peet’s Coffee & Tea (NASDAQ: PEET) Cut to Neutral at Piper Jaffray.
  • Premier Exhibitions (NASDAQ: PRXI) Cut to Neutral at Merriman Curhan Ford.
  • Pulte Homes (NYSE: PHM) Cut to Neutral at JPMorgan.
  • Royal Gold (NASDAQ: RGLD) Cut to Sector Underperform at CIBC.
  • Sun Microsystems (NASDAQ: JAVA) Cut to Sell from Neutral at Goldman Sachs (added details).
  • Teck (NYSE: TCK) Cut to Neutral at UBS.
  • Teradyne (NYSE: TER) Cut to Market Perform at FBR.
  • UDR Inc. (NYSE: UDR) Cut to Sell at Goldman Sachs.
  • Vornado (NYSE: VNO) Cut to Neutral at Goldman Sachs.

Jon C. Ogg
January 8, 2009

Posted on: January 8, 2009 – 7:29 am in Analyst Calls, , , , , , , , , , , , , , , , , ,

Top Pre-Market Analyst Downgrades (ACN, ADBE, DOX, CREL, CTRP, IACI, ISIL, KLAC, SAPE, SSCC)

These are some of the top pre-market analyst downgrades and cautious calls we have seen this Thursday morning:

  • Accenture (ACN) Cut to Neutral at Goldman Sachs.
  • Adobe Systems (ADBE) Cut to Neutral at Baird.
  • Amdocs (DOX) Cut to Neutral at Goldman Sachs.
  • Corel (CORL) Cut to Neutral at Piper Jaffray.
  • Ctrip.com (CTRP) Cut to Neutral at Goldman Sachs.
  • IAC/Interactive (IACI) Cut to Equal-Weight at Barclays.
  • Intersil (ISIL) Cut to Neutral at Goldman Sachs.
  • KLA-Tencor (KLAC) Cut to Hold at Citigroup.
  • Sapient (SAPE) Cut to Sell at Goldman Sachs.
  • Smurfit-Stone (SSCC) Cut to Neutral at Credit Suisse.

Jon C. Ogg
December 4, 2008

Posted on: December 4, 2008 – 8:03 am in Analyst Calls, , , , , , , , , ,

Top Pre-Market Analyst Downgrades (KELYA, KLAC, LRCX, MRVL, PNY, RHI, SNDA, XLNX)

These are the top downgrades and negative analyst calls we are seeing this Thursday morning:

  • Kelly Services (KELYA) Cut to Sell at Citigroup.
  • KLA-Tencor (KLAC) Cut to Equal-weight at Morgan Stanley.
  • Lam Research (LRCX) Cut to Underweight at Morgan Stanley.
  • Marvell Technology (MRVL) Started as Neutral at Credit Suisse.
  • Piedmont Natural Gas (PNY) Cut to Neutral at Baird.
  • Robert Half (RHI) Cut to Sell at Citigroup.
  • Shanda Interactive (SNDA) has seen estimate and targets cut by Citigroup, JPMorgan, and Goldman Sachs.
  • Xilinx (XLNX) Started as Neutral at Credit Suisse.

Jon C. Ogg
September 4, 2008

Posted on: September 4, 2008 – 6:26 am in Analyst Calls, , , , , , , ,

Early-Bird Analyst Upgrades (DLTR, HTX, KLAC, ORLY, TSRA, AUY)

These are some of the early analyst upgrades or positive calls we are seeing this Wednesday in early pre-market hours:

  • Dollar Tree (DLTR) Raised to Buy at S&P.
  • Hutchinson Telecom (HTX) Raised to Buy at Citigroup.
  • KLA-Tencor (KLAC) Raised to Overweight at HSBC.
  • O’Reilly Automotive (ORLY) Raised to Overweight at JPMorgan.
  • Tessera Technologies (TSRA) Raised to Outperform at FBR.
  • Yamana Gold (AUY) Raised to Outperform at RBC.

JON C. OGG
August 20, 2008

Posted on: August 20, 2008 – 6:39 am in Analyst Calls, , , , , ,

Top Analyst Upgrades (AMAT, BP, CPST, EGLT, ELON, ITRI, KLAC, NSC, PQ, PCLN)

These are some of the top UPGRADES we are seeing from Wall Street analysts this Thursday morning:

  • Applied Materials (NASDAQ: AMAT) Started as Buy at Banc of America.
  • BP plc (NYSE: BP) raised to Overweight from Neutral at HSBC Securities.
  • Eagle Test Systems (NASDAQ: EGLT) started as Buy at Banc of America.
  • KLA-Tencor (NASDAQ: KLAC) Started as Buy at Banc of America.
  • Norfolk Southern (NYSE: NSC) Raised to Overweight at JPMorgan.
  • PetroQuest Energy (NYSE: PQ) Raised to Buy from Neutral at UBS.
  • Priceline.com (NASDAQ: PCLN) started as Buy at Stanford Research.

Jon C. Ogg
July 10, 2008

Posted on: July 10, 2008 – 7:01 am in Analyst Calls, , , , , , , , , ,

Top 10 Pre-Market Analyst Calls (AAPL, AMAT, BMC, COLM, SCOR, KLAC, NVLS, TJX, SONC, TIN)

These are the top analyst calls that 247WallSt.com is focusing on this Monday morning:

  • Apple (NASDAQ: AAPL) Raised to Overweight from Market Weight at Thomas Weisel.
  • Applied Materials (NASDAQ: AMAT) Cut To Neutral from Outperform at Credit Suisse.
  • BMC Software (NYSE: BMC) Cut to Neutral from Buy at Goldman Sachs.
  • Columbia Sportswear (NASDAQ: COLM) Cut to Sell From Hold at Citigroup.
  • ComScore(NASDAQ: SCOR) Raised to Buy from Hold at Jefferies.
  • KLA Tencor (NASDAQ: KLAC) Raised to Buy from Hold at Citigroup.
  • Novellus Systems (NASDAQ: NVLS) Raised to Equal-weight from Underweight By Lehman.
  • TJX (NYSE: TJX) Cut to Hold from Buy at Citigroup.
  • Sonic (NASDAQ: SONC) Started as Overweight at Lehman Brothers.
  • Temple-Inland (NYSE: TIN) Raised to Buy from Hold at Citigroup.

Jon C. Ogg
April 7, 2008

Posted on: April 7, 2008 – 6:56 am in Analyst Calls, , , , , , , , , ,

52-Week Lows, Massive List (ALU, BGP, CELL, BBW, CVO, DENN, GCI, INFY, INTU, KLAC, NT, NWA, NXTM, PDLI, PFE, Q, SVVS, SNE, BID, TWX)

This was a massive list of lows today.  Not all closed on lows, but the list was chopped down greatly just to accommodate the size of it.  If you look at the list, there are no brokerage firms listed nor anymajor banks.  The major banks weren’t hitting the list but mostbrokerage firms were.  You can thank a firm called Bare Spurns for that. Here goes the eulogy:

  • Advance America (NYSE: AEA).. down over 10%, no real news released; financial exposure, although they are probably getting more and more pay day loans now. $6.08 at 3:30, old low $6.08.
  • Alcatel-Lucent (NYSE: ALU)… down almost 5% at $5.29, although late day got back above that $5.27 year low.
  • Borders Group (NYSE: BGP)… down another 6% ahead of earnings next week. The people that still buy books may be headed to the used book stores in tough times.  Maybe even the library.
  • Brightpoint (NASDSAQ: CELL)… day in and day out this one has been getting hit.
  • Build-a-Bear Workshop (NYSE: BBW)… now it can be even more opportunistic after ending strategic review and adding a larger buyback plan.
  • Cenveo (NYSE: CVO)… down 14% after earnings.
  • Denny’s (NASDAQ: DENN)… under $3.00 now… stock cheaper than the Grand Slam breakfast?  Maybe people can’t afford $3.00 breakfasts.
  • Gannett Co. Inc. (NYSE: GCI)… after earnings people still wary of newspaper operations.
  • General Motors (NYSE: GM)… flirting with 5-year lows.
  • Infosys Tech (NASDAQ: INFY)… This didn’t close under the old $33.80 low of the year, but was there intraday.  Maybe outsourcing is peaking.
  • Intuit (NYSE: INTU)… had no news, that pre-tax season trade getting cheaper and cheaper.
  • KLA-Tencor (NASDAQ: KLAC) hit hard again after downgrade already shaved off almost 10% earlier in wee.  Down 4.4% at $36.40 with 15 minutes to close.
  • Nortel Networks (NYSE: NT) at $6.34 at 3:45… High is $27.71.  What more can you say? It’s always on the list.
  • Northwest Airlines (NYSE: NWA) down over 3.5% at $9.50 with 15 minutes to close. What ever happened to that merger they were supposed to be in?
  • Nxstage Medical (NASDAQ: NXTM)… are kidney dialysis treatments economically sensitive?
  • PDL Biopharma (NASDAQ: PDLI).. so much for that buyout hope, that’s already been called off.  Almost under a $1 Billion market cap.
  • Pfizer (NYSE: PFE)… a true surprise to see this one here again.  Will it bust $20? Shares down 3% at $20.55 with 10 minutes to close.
  • Qwest Communications (NYSE: Q)…. now under $5.00.
  • Savvis Inc. (NASDAQ: SVVS)… down more than 5% to under the old $15.14 low. Doing IT, bandwidth, storage, network infrastructure, not as great when you have huge exposure to financial institutions.
  • Sony Corp. (NYSE: SNE)… just when it was getting its act back together… $41.81 right before close; old 52-week low was $42.10.
  • Sothebys (NYSE: BID)… down more than half from highs.  Wall Street’s "Even the rich are bitching!" must apply to high-end auctioneers too.
  • Time Warner (NYSE: TWX)….. now under $14.00.

Jon C. Ogg
March 14, 2008

Posted on: March 14, 2008 – 3:04 pm in HI/LOW, , , , , , , , , , , , , , , , , , , ,

The 52-Week Low Club (AMR)(KLAC)(HUM)

Progenics Pharmaceuticals (PGNX) Clinical trials fail. Drops to $4.33 from 52-week high of $27.59.

Divx Inc (DIVX) Bad 2008 forecast. Shares sell off to $6.12 from 52-week high of $23.76.

Immucor (BLUD) Buy-out of smaller company kills share price. Down to $17.30 from 52-week high of $39.96.

KLA-Tencor (KLAC) Shares downgraded. Slips to $37.75 from 52-week high of $62.67.

Humana (HUM) Cuts forecasts. Dives to $33.45 from 52-week of $88.10.

AMR Corporation (AMR) Airline stocks downgraded as oil price goes up. Plunges to $9.13 from 52-week high of $34.25.

Douglas A. McIntyre

Posted on: March 12, 2008 – 2:59 pm in HI/LOW, , , , , ,

Top 10 Pre-Market Analyst Calls (DVR, GHDX, KLAC, KR, LCAPA, LOW, NOK, PBT, TMA, UBS)

Below are the top calls that 247WallSt.com is focusing on in pre-market trading this Wednesday:

  • Cal Dive International (NYSE: DVR) Raised To Overweight at JP Morgan.
  • Genomic Health (NASDAQ: GHDX) Cut To Neutral at JP Morgan.
  • KLA-Tencor (NASDAQ: KLAC) cut to Underperform at Oppenheimer.
  • Kroger (NYSE: KR) cut to Underweight at at JPMorgan.
  • Liberty Capital (NASDAQ: LCAPA) cut to Hold at Deutsche Bank.
  • Lowe’s (NYSE: LOW) cut to Underperform at Morgan Keegan.
  • Nokia (NYSE: NOK) raised to Outperform at Oppenheimer.
  • Permian Basin (NYSE: PBT) cut to Hold at Citigroup.
  • Thornburg Mortgage (NYSE: TMA) Raised to Peer Perform at Bear Stearns.
  • UBS (NYSE: UBS) cut to Underperform at KBW.

Jon C. Ogg
March 12, 2008

Posted on: March 12, 2008 – 6:51 am in Analyst Calls, , , , , , , , , ,

KLA-Tencor Loses CFO (KLAC)

KLA-Tencor Corporation (Nasdaq:KLAC) has announced that Jeffrey Hall, its CFO, will resign effective March 31, 2008.  Normally we look further into CFO resignations since they are the final ones who "sign off on the books" but this reasoning has been disclosed as "to pursue an opportunity closer to his mid-western hometown."

The board of directors has also appointed John Kispert, KLA-Tencor’s president and chief operating officer, as the interim chief financial officer, effective March 31, 2008. Kispert will also retain his duties as president and chief operating officer. It also appointed Virendra Kirloskar, its vice president and corporate controller of KLA-Tencor, as chief accounting officer, effective March 31, 2008.

Besides an obvious slowing chip market, this doesn’t look like anything ominous that would need to be thoroughly questioned.  It looks like he joining Express Scripts (NASDAQ: ESRX) as its CFO.  Shares closed down 0.9% at $41.63 in normal trading, and shares are down almost 1% more at $41.22 in after-hours trading.  KLA’s 52-week trading range is $39.86 to $62.67.

Jon C. Ogg
March 3, 2008

Posted on: March 3, 2008 – 4:24 pm in Management Change, Semiconductor,

52-Week Low Club: Transport, Semiconductors & Financials (January 2, 2008)

Truckers led the drop after a fake $100 oil print and after a YRC Worldwide (NASDAQ: YRCW) acquisition write-down, pulling down Arkansas Best (NASDAQ: ABFS) and others.  With no surprise, airlines followed suit with Airtrain (AAI), AMR Corp. (NYSE: AMR), Continental Airlines (NYSE:CAL), Delta (NYSE: DAL), FedEx (FDX), Jetblue (NASDAQ:JBLU), Mesa Air (NASDAQ: MESA), Northwest Air (NYSE: NWA), Southwest Airlines (NYSE:LUV), US Air (NYSE: LCC).

Chip and tech stocks on 52-week lows: AMAT, AMD, ADTN, ARRS, ATML, BBND, CHRT, FCS, FEIC, IDTI, IM, KLAC, KLIC, LRCX, LSCC, LSI, MCRL, MRVL, MU, NSM, STM, TER, XLNX

Financial Giants on 52-Week lows: BAC, BBT, BSC, CYN, DFG, EFX, FIC, FITB, FHN, MCO, NCC, PNSN, SNV, SBP, WFC, ZION.

We kept the REIT’s and the usual suspects in retail off the list that have been here day in and day out (although many hit new 52-week lows).  Here is the huge list of others 52-week lows:

  • Automatic Data (ADP), Cardinal Health (CAH), Career Education (CECO), Diebold (NYSE: DBD), EchoStar (DISH), Superior Offshore (DEEP), Dow Chemical (DOW), Eastman Kodak (EK), Emmis (EMMS), Ford (F), Fortune Brands (FO), General Motors (GM), Hasbro (HAS), Helen of Troy (HELE), Interpublic (IPG), Mattel (MAT), McClatchy (MNI), Media General (MEG), Nortel Networks (NT), Owens Corning (OC), Paychex (OPAYX), PHH Corp. (PHH), Playboy (PLA), Radio Shack (RSH), Rite Aid (RAD), Sherwin Williams (SHW), Sprint Nextel (S), Starbucks (SBUX), Starwood Hotels (HOT), Sun Microsystems (JAVA), Symantec (SYMC), Travelzoo (TZOO), VF Corp (VFC), Warner Music Group (WMG), Waste Management (WMI), Weight Watchers (WTW), Wendy’s (WEN)

Imagine how large this list would have been if retailers and REIT’s were included.
Jon C. Ogg
January 2, 2008

Posted on: January 2, 2008 – 4:23 pm in HI/LOW, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Media Digest 10/26/2007 Reuters, WSJ, NYTimes, FT, Barron’s

According to Reuters, Microsoft’s (MSFT) strong quarter and forecast sent shares up over 10%.

Reuters writes that Oracle (ORCL) has turned down BEA Systems’ (BEAS) proposal that the company be sold at a price above Oracle’s current offer.

Reuters writes that Bank of America (BAC) has dropped out of the wholesale mortgage business.

The Wall Street Journal writes that crude oil rose above $90 a barrel.

The Wall Street Journal writes that the UAW will begin negotiations with Ford (F), which may need larger cost cuts than rivals.

The Wall Street Journal writes that Comcast’s (CMCSA) earnings were hurt by competion for phone company offerings.

The New York Times writes that the CEO of Merrill Lynch (MER) spoke with Wachovia about a merger without consulting his board.

The New York Times writes that Vonage (VG) sellted a patent dispute with Verizon (VZ).

Barron’s writes that shares of KLA (KLAC) dropped on profit troubles.

Bloomberg writest that the CEO of Motorola (MOT) may have bought himself time through firings and slightly improved results.

CNN Money writes that AIG (AIG) may face a sub-prime mortgage hit of as much as $8.8 billion.

Douglas A. McIntyre

Posted on: October 26, 2007 – 3:02 am in Press Digest, , , , , , , , , , ,

Applied Materials: What To Expect From Earnings (AMAT, KLAC, NVLS, LRCX, ASML)

AppliedMaterials (NASDAQ:AMAT) reports earnings today after the close and First Call estimates are still $0.32 EPS and$2.53 Billion in revenues.  Next quarter is also its fiscal year-endand analysts expect it to post $0.30 EPS on revenues of $2.46 Billion for the quarter.

Analysts are mixed on the stock, but average targets from analystsare between $24.00 and $25.00. The chart had been quite hard to notnotice last week when the market was in turmoil, but shares have given up a little more ground.  Last week we noted how the stock hadn’t gotten thedown market memo, because it has been in an up-trend and its shares were down only about 3% from recent highs of $23.00.  Shares are lower and closer to $21.50 now.  That recent$23.00 high is within 10% of a 5-year high.  On a static basis, option trader expectations late morning appear to bracing for a move only $0.40 to $0.55 depending on which contract you use.  Keep in mind that with a Friday options expiration the time value will erode rapidly.

Interestingly enough, one of the things that has been helpingApplied out is its new and upcoming solar operations.  After a coupleof recent solar and silicon related purchases and with the extracapacity that Applied has in its capacity arsenal, this solar operationis becoming a business that has the potential of becoming a dominantplayer in the coming years.  It is even feasible that this could becomeits own entity to unlock shareholder value down the road, although thatis far too soon to predict or target.

Bets have been that despite a weak cap-ex market that it willchange or at least not deteriorate.  Themain US chip equipment and cap-ex names to watch for secondary movementare KLA-Tencor (NASDAQ:KLAC), Novellus (NASDAQ:NVLS), LAM Research(NASDAQ:LRCX), and ASML Holdings NV (NASDAQ:ASML) in Europe.

Jon C. Ogg
August 14, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

               

Posted on: August 14, 2007 – 9:59 am in Earnings, Semiconductor, , , , , ,

Previewing Applied Materials Earnings; They Didn’t Get The Down Market Memo (AMAT, KLAC, NVLS, LRCX, ASML)

Applied Materials (NASDAQ:AMAT) reports on Tuesday, August 14.  This will be interesting for chip equipment stocks as this is the largest chip equipment stock out there, but the main reason this will be even more interesting than normally is thatthis has held up incredibly well in what has become quite a crummy stock market.  As of today, First Call estimates are $0.32 EPS and $2.53 Billion in revenues.  Next quarter is also its fiscal year-end and analysts expect it to post $0.30 EPS on revenues of $2.46 Billion. 

Analysts are mixed on the stock, but average targets from analysts are between $24.00 and $25.00. The chart has been quite hard to not notice.  Bets have been that despite a weak cap-ex market that it will change or at least not deteriorate.  The stock so far hasn’t gotten the down market memo, because it has been in an up-trend and its shares are just down about 3% from recent highs of $23.00.  In fact, that recent $23.00 high is within 10% of a 5-year high.  We are not going to comment on option trader expectations today because of the volatile market and time value compression with options expiration being next Friday.

Interestingly enough, one of the things that has been helping Applied out is its new and upcoming solar operations.  After a couple of recent solar and silicon related purchases and with the extra capacity that Applied has in its capacity arsenal, this solar operation is becoming a business that has the potential of becoming a dominant player in the coming years.  It is even feasible that this could become its own entity to unlock shareholder value down the road, although that is far too soon to predict or target.

Outside of almost everyone in the chip equipment sub-sector, the main US chip equipment and cap-ex names to watch for secondary movement are KLA-Tencor (NASDAQ:KLAC), Novellus (NASDAQ:NVLS), LAM Research (NASDAQ:LRCX), and ASML Holdings NV (NASDAQ:ASML) in Europe.

Jon C. Ogg
August 10, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: August 10, 2007 – 12:36 pm in Earnings, Semiconductor, , , , , ,