Taiwan Semiconductor Manufacturing Co. Ltd. (ADR (NYSE:TSM)

upward pressure and paying a Div

-

12/17

$59 Billion market cap? You have got to be kidding!

Current Quarter vs. Prior Year: For the third quarter 2011, analysts estimate TSM will earn $0.19 per share, a decrease of 33.32% over the prior year third quarter results.
+17.4%Annualized 5 Year growth rate
Growth Rates
1 Yr 3 Yr 5 Yr
+16.6% +32.5% +17.4%

Many people don't realize this, but with the increase in cloud computing, companies will need massive amounts of chips to power those servers. With TSM being the largest semiconductor manufacturer in the world, most of that workload will fall to them. This rush to produce enormous amounts of chips should see their stock rise by a considerable amount. They also pay out a fairly large dividend, which is always nice.

Low debt. Good yield. Iphone 5 !

They are about to start manufacturing Apple's new processors. Should help out there company and drive up its stock.

Analysts are dog piling on the entire semiconductor industry right now, expecting low growth and maybe they are right, but it won't last long. Consumers like their electronic gadgets, and even recessions aren't stopping them from getting their iPods and IPad's.

And the bad news is already priced in the stock, so our downside risk is limited.

So the stock is cheap, but cheap stocks can always get cheaper.

Even through the worst recession in modern history, TSMC increased earnings. In 2007, diluted earnings per share came in at 2.71 Taiwanese Dollars. In 2008, they increased to 3.13, 2009 popped to 3.44, and almost doubling in 2010 to 6.31.

The company keeps very little debt on the books and pays a nice 3.3% dividend while you wait for the stock to rebound. When the recovery hits full steam, this stock should soar.

I always like to find a little something extra that might goose a stock beyond our expected returns and with TSMC, the rumor is that Apple will select it to supply the new A6 processor. If that is true, then we can expect more gains in the share price.

A diversification and dividend play. It's a semi-conductor stock with a dividend. Not often mentioned in the press. Been in the business a long time. Share price does not have a recent history of significant upside price appreciation.

Pulling ahead of the S&P. Big growth

Run this stock through a screener. No other equity in the world has fundamentals this strong. This stock represents both value and growth, plus it has a dividend yield north of 3.5%. What is not to like?

semi2011

apple

Low cost supplier with increasing demand for their abilities- wait for it.

Excellent stock to trade or to hold.

Low cost producer in a product that is essentially, a commodity.

Profile
Taiwan Semiconductor Manufacturing Co. Ltd.
No 8 Li-Hsin Road 6
Hsinchu Science Park
Hsinchu, 300
Taiwan - Map
Phone: 886 3 563 6688
Fax: 886 3 563 7000
Website: www.tsmc.com

Details
Index Membership: N/A
Sector: Technology
Industry: Semiconductor - Integrated Circuits
Full Time Employees: 34,130

Business Summary

Taiwan Semiconductor Manufacturing Company Limited engages in the computer-aided designing, manufacturing, packaging, testing, and selling integrated circuits and other semiconductor devices; and manufacturing masks. It offers a range of wafer fabrication processes, including processes to manufacture complementary metal oxide silicon (CMOS) logic, mixed-signal, radio frequency, embedded memory, BiCMOS mixed-signal, and other semiconductors. The company?s semiconductor products include logic semiconductors that process digital data to control the operation of electronic systems, as well as standard logic devices that include microprocessors, microcontrollers, digital signal processors, graphic chips, and chip sets; and mixed-signal/RF semiconductors, which combine analog and digital devices on a single semiconductor to process analog and digital data for use in hard disk drives, wireless communications equipment, and network communications equipment. It also offers memory semiconductors that are used in electronic systems to store data and program instructions; CMOS image sensor semiconductors, which are primarily used in camera phones; and high voltage semiconductors, including high voltage CMOS, bipolar-CMOS-DMOS, and ultra-high voltage technology products for use in various panel-size display driver and power IC applications. In addition, the company offers design and technology platforms, and multi-project wafer processing services. It serves fabless semiconductor and systems companies, and integrated device manufacturers primarily in North America, Asia, and Europe. The company was founded in 1987 and is headquartered in Hsinchu, Taiwan.

***All above information from YAHOO FINANCE***

Underappreciated by the investment community - market leader, low p/e, super strong balance sheet, very attractive dividend, excellent long term demand prospects as the world adopts digital technology that also spurs demand for analog components...semiconductor firms are in the beginning stages of a major secular trend that will last 10-30 years...they are the 'new age' industrials of yester-years...BUY BUY BUY...