This Week’s Tech Earnings Winners and Losers: Amtech, Marvell, Dell, and More (TWER, ASYS, DELL, TSEM, MRVL, AAPL, INTC, HLIT, BCSI)
Earnings season is ongoing in the tech sector. What should investors expect from these reports? What are the key storylines to follow and are these stocks likely to trade higher or lower in the wake of their results?
In NextInning.com’s earnings previews, available free to trial subscribers, key storylines are evaluated, analyst expectations are audited, and in depth valuation analyses are provided to develop fair value ranges for dozens of stocks. Next Inning’s model portfolio has returned 280% since 2002, more than seven times the return of the S&P 500.
In its latest earnings preview, Next Inning looks at several popular stocks, including Towerstream (TWER), Amtech Systems (ASYS), Dell (DELL), Tower Semiconductor (TSEM), Blue Coat Systems (BCSI), and Marvell Technology (MRVL).
Here is just a tiny sample of what Editor Paul McWilliams wrote about Amtech Systems:
“Amtech is a great case study in how perception and emotion can push stocks both far below and far above reasonable valuations. When I suggested Amtech was a good speculative investment in December 2008 it was trading for only $2.48 versus the net cash value of $4.01 carried on its balance sheet. Amtech’s net current asset value of $6.24 then was roughly 2.5 times higher than its market price.
“My thesis in 2008 was the downside risk was minimal and Wall Street was ignoring the fact China was poised to invest heavily to develop fabrication capacity for solar and LED initiatives. As I saw it, Amtech was perfectly positioned to capitalize on these investments. As it turned out, my thesis was correct; Amtech more than doubled its revenue from fiscal 2009 to fiscal 2010.
“Prior to the solar and LED crazes Amtech sold most of its trailing edge fabrication equipment into the analog mixed signal sector where horizontal diffusion furnaces and handling equipment were still being used. This was a nice, but low growth and cyclical business for Amtech. However, when China began to ramp fabrication capacity for solar and LED technologies Amtech became a major supplier and Wall Street went wild for the stock pushing its price up to $30.80 last February.”
Just a few of the correct calls Next Inning has already made this earnings season include:
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David Einhorn Buys CBS, General Motors & Marvell Technology: Q3 Letter (market folly, 11/8/11)
Will Apple Boost This Semiconductor Company? (Investment U, 9/28/11)
(MRVL) Marvell Technology Group Sees Growth Prospects (Stock Blog Hub, 6/7/12)
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