Monday, December 6, 2010

Applied Materials Inc - A long term Buy?

Technical Analysis:
1) Both Stochastic and MACD are showing positive signal.
2) The target and next resistance is now at $13.60, which shows on the above chart.
3) The strong uptrend line has not been broken. It shows that chart is still very strong and moving upward.

Below are the EPS for the past 4 quarters:
1) Quarter 1, 2010= $0.13
2) Quarter 2, 2010= $0.22
3) Quarter 3, 2010= $0.29
4) Quarter 4, 2010= $0.36

Based on the increasing quarterly profit for AMAT, the fundamental for this strong is very strong.

It is definitely a buy from me based on my above analysis. I have found an interesting article as per below:-

Applied Materials, Inc. Growing its Revenues with 122.10% - NASDAQ:AMAT


22 November 2010

Applied Materials reported its earnings results on November 17th which was stronger than expected. For the fourth quarter of fiscal 2010 ended October 31 company generated orders of $3.03 billion, net sales of $2.89 billion, operating profit of $699 million, and net income of $468 million or $0.35 per share. Non-GAAP net income was $476 million or $0.36 per share. With these strong results the share price significantly surged from $12.38 on 17th November to $12.65 on 18th November. There was also an exponential rise in the volume which became 21.84 million right after earnings announced when the volume was 14.72 million shares.

Performance on November 19, 2010 of Applied Materials, Inc. NASDAQ:AMAT reduced 0.94% with the closing price of $12.53. The overall volume in the last trading session was 16.92 million shares. Its fifty two week range was $10.27- $14.94. The total market capitalization remained $ 16.74 billion.
Company disclosed its latest financials by Aug 1, 2010. According to the reporting company had positive results generated through its operations. Company had trailing twelve months operating margin of 16.48% while the operating margin included 7.42%. A high operating margin is good for company to easily cater with its fixed costs. On the earnings side the total return on assets recorded 8.31% while the return on equity remained 8.50%.
Over the last quarters Company’s revenue significantly grown with 122.10%. The total trailing twelve months revenue was recorded $ 8.19 billion while the net income available to common stock holders was recorded $ 607.71 million.
In arranging the capital management remained less reliant on debt. The total debt, in the most recent quarter, was recorded $ 206.29 million and the total cash remained $ 2.35 billion. This combination resulted in debt to equity ratio of 2.83. Management also increased the investment activities. The short term investments were $ 738,433,000 on May 2, 2010 which then surged to $ 783,799,000 as on Aug 1, 2010. The long term investments were $ 1,230,214,000 on May 2, 2010 and then increased to $ 1,279,515,000 on Aug 1, 2010.
Applied Materials, Inc. (Applied) provides Nanomanufacturing Technology solutions for the global semiconductor, flat panel display, solar and related industries, with a portfolio of equipment, service and software products. The Company’s customers include manufacturers of semiconductor wafers and chips, flat panel liquid crystal displays, solar photovoltaic cells and modules (solar PVs), and other electronic devices. It operates in four segments: Silicon, Applied Global Services, Display, and Energy and Environmental Solutions. Applied’s Silicon Systems Group (SSG) develops, manufactures and sells a range of manufacturing equipment used to fabricate semiconductor chips, also referred to as integrated circuits (ICs).


1 comment:

  1. Applied materials seems like one excellent company in the technology area. This company is only second to a company like apple or Intel. Its also a somewhat lesser known name in the tech business.


Related Posts Plugin for WordPress, Blogger...