Thursday, October 16, 2014

Kulicke and Soffa Industries, Inc. - Analysis


Kulicke and Soffa Industries, Inc (KLIC) is based in Singapore and company specialized about semiconductor devices, LED's and power modules. Personally, I'm following this stock from 2011 and from 2011 to 2014, what I see as a general trend is just rocketing,



Today prices ($12,86) for company is fairly okey to BUY the stock, here is why:
  • The stock was in that point at April 2014 and after that it raised the peak ($15,23)

                                                 Today's Price: 7/10
  • Let's examine the Yahoo Finance stock chart of the company ;
As can be seen in the graph, after every sharp down trend, it raised right back-up and now it is again making sharp-downing which is a powerful signal of rocketing.

                                                                                               Graph Analysis: 7/10
  • Financial situation of KLIC is well SAFE, which makes investor's hand so powerful, The cash&cash equivalents of the company is increasing every year and last quarter report is showing that they have 600 million $ (cash only: 398,74M$) cash short term investment. And the best point is the company is non-debt company which is my favorite. Ofcourse they have accounts payable but it is just %10 of their cash reserves.

                                   Cash to Debt: 10/10
  • KLIC's P\E ratio is less than the market's P\E ratio (15,64) and has PEG ratio just 1,08  which makes them very strong `undervalued` stock of the market.

                                         P\E-PEG Ratio: 7/10

  • However, KLIC's market cap is much lesser than market leaders such as ASML Holding or Tokyo Electron which is big disadvantage of KLIC because if you are not controlling at least one part of the
                           
                                   Market Cap: 3/10


Conclusion

Kulicke and Soffa Industries, Inc is very safe stock. Maybe they are not the leaders of the market but they are strong and aiming the success. They have high cash reserves and good statistical ratios which makes them the true horse of this race.All in all, my final grade to Kulicke and Soffa Industries is 7/10 which is BUY.

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