Lam Research Corp (LRCX)
Design, manufacture, market, and service semiconductor processing equipment used in the fabrication of integrated circuits and are recognized as a major supplier of such equipment to the semiconductor industry.
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Strong products in a recovering industry. Capital spending must increase in 2010 / 2011.
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The Semiconductor industry is extremely cyclical. When it's hot, it's hot and likewise when it's cold. LRCX will rebound nicely when the industry picks up. I prefer LRCX over AMAT.
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Semiconductors and Retailers are about to face its crisis with no demand, uncertainty, inventory and dim outlook.
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Lots of shares buybacks.
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3 to 5 star stock in one year.
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magicformulainvesting.com screen at $153M market cap, top 25 companies on June 26, 2008
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One of my chip picks along with VSEA & SNDK.
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I've posted my reasoning behind my Lam Research purchase at my personal blog -- where I can upload charts and graphs.
http://rcrawford.wordpress.com/2008/05/27/oot-out-of-tow…arch-nyse-lrcxoot-out-of-town-this-week-lam-research-nyse-lrcx/
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This company is one of 62 listed on the BetterInvesting Growth Screen in January 2008. It met 4 criteria: it is projected by Value Line to double earnings in the next five years, has actually doubled earnings in the past 5 years, is selling at price-earnings multiples (P/E’s) that are 110 percent or less of Value Line’s projected earnings growth rate and has a safety rating of average or better. It was listed in the March 2008 BetterInvesting magazine.
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screen p/e < 10 rev growth > 20 earning growth > 20
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4 sterne mit steigender tendenz
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In order to make the gadget of the moment, parts are needed. Thus this stock will out perform the assemblers.
I think this stock will do well over the next year or so.
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Research for the baby boomers next medical need or just convenience will help this company stay ahead of the game.
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LRCX has the best management team and technology in the semi-conductor equipment business. Once the review of stock options methods is completed, this overhang will allow the stock valuation to increase.
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Great value in a cyclical growth area (chip equipment) that happens to be down right now. Also has a couple nice niches carved out.
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Undervalued with a PE less than 10. How much more of a beating can this thing take?
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PE of 12 is less than competitors, while growth and margins are better. Still some room to grow.
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I'm not much of a chartist, but even though this is a good long term co., it appears to be in a downtrend, and this company does take some nasty dips.... besides, I got burned in the mid 90's when it got zapped over 7 points in one day, and I was on margin-- so there's a personal issue here, too, even if it is only on paper..
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Today the market sold off hard, but Lam and other semi are very upbeat at the moment. Analysts are frequently wrong on the timing of this industry's ups and downs.

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