3SOF

I sold TMTA yesterday, according to plan, and since I want the 3 Stocks on Fire Portfolio to remain full invested, I'm replacing TMTA with KLIC.

The company issued results yesterday:

«Kulicke & Soffa rallies as results, outlook top expectations

KLIC rallied 10% in pre-open trading after the company reported fiscal fourth-quarter earnings of $12.6 million, or 19 cents a share, up from 5 cents a share in the year-earlier period and above the average analyst estimate compiled by Thomson First Call of 18 cents a share. Revenue rose to $182 million from last year's $147.5 million, topping analyst forecasts of $179.6 million. The company said it expects fiscal first-quarter revenue of $200 million to $220 million, ahead of analyst projections of $175.9 million. The stock was last trading up 73 cents at $7.80 in Instinet.»

If earnings were to remain stagnant for the next 4 quarters KLIC would make $0.76 per share in profits. The current share price for the stock is $8.27, so the earnings multiple is just 10.88.

More, the company raised fiscal 1st quarter revenue estimates a lot, from $175.9M to a range between $200 and $220M  

Earnings growth was, what, 280% from the last year, the P/E Ratio is about 11 and the company is raising guidance a lot !

I'll just close my eyes, buy the stock at the open and make money over the coming weeks, as the share price discounts these significant changes in fundamentals.

I'll buy KLIC at today's open for the 3 Stocks on Fire Portfolio, 6.66% of capital as always.

 KLIC: Merrill Lynch Ups to Neutral from Sell
Friday , November 18, 2005 08:34 ET

Issuer: Kulicke & Soffa Industries Inc (NasdaqNM: KLIC)

Analyst Firm:  Merrill Lynch & Co.

Ratings Action: UPGRADE

Current Rating: Neutral (from Sell)

Bought KLIC yesterday at open - $7.50 and sold this morning at open - $8.67.

Long term, it will continue going up and will test year-high of $11.
But as short term trader, if I see a gap today, will sell it and buy back later.

NASDAQ is forming an ascending trendline and is about to break-out three year-high.

Thanks for that article fill_the_gap, very informative 

I want to highlight this:

«If you believe that the overall market for semiconductors is going to get better and that customers like Advanced Semiconductor Engineering (NYSE: ASX - News), Texas Instruments (NYSE: TXN - News), and Intel (Nasdaq: INTC - News) will have the capital, the order levels, and the desire to justify more capital spending, these shares could still have some appeal.»

The market believes, I believe !

Thanks for that information la-onda 

Nice trade shawFund, congrats 

For me this trade is clear, KLIC rose guidance a lot and the stock will be discounting these fundamental changes as time goes by. To do that it must go up !

I don't see the current bullish leg ending before the long term resistance is touched. For today the descending trendline is standing at $11.48, coming down about $0.01 per trading day.

I know I would take profits there if I had the chance. I still don't have a downside protection level, probably tomorrow I'll design one.

No time to go deeper into KLIC, the stock was down a lot yesterday but it came back by the end of the session. I'm still in the green on KLIC and I expect to continue that way.

But I'll hold whatever happens today, after the close I'll design a trading plan with a profit target and a safety net (unless there's something so compelling and understandable in the fundamentals that makes me hold KLIC long term).

QuoteBut I'll hold whatever happens today, after the close I'll design a trading plan with a profit target and a safety net (unless there's something so compelling and understandable in the fundamentals that makes me hold KLIC long term).

I'm not thinking of holding KLIC long term, but that upward revenue guidance for the 4th quarter just tells me earnings are going to be great when this company reports in January or February.

The stock is holding up pretty well, considering the big white candle it made last Thursday. No detailed trading plan yet, just hold.

Recently we've had no news on KLIC and the chart is in a congestion phase. The pattern looks like a flag, which is bullish, since it is a continuation pattern. For today, the lower limit of the flag is  $8.26 and the upper limit is $8.59.

I hope the stock breaks $8.59 on the upside, I'll continue holding either way.

Quote from: David Randolph on November 25, 2005, 08:18:52 AM
Recently we've had no news on KLIC and the chart is in a congestion phase. The pattern looks like a flag, which is bullish, since it is a continuation pattern. For today, the lower limit of the flag is  $8.26 and the upper limit is $8.59.

I hope the stock breaks $8.59 on the upside, I'll continue holding either way.

Although the stock closed at $8.60 on Friday, being coherent, I can't consider the congestion phase as over. But maybe it is over. I have a 2.81% open profit in KLIC, and my willing is to let it grow.

Therefore I'll continue holding KLIC.

I was right not to consider the congestion phase as over. As a matter of fact there was a pretty ugly sell off yesterday on KLIC. KLIC is related to the semiconductor industry and I'm bearish on that group now: it failed to make new highs while the Nasdaq made them.

I want to get more conservative now, it's a pity the bull run didn't last longer (it may still give some positive days and make new highs, but I would say the bear started before the bull was over).

I have a 1.61% loss at KLIC, and I don't want to risk a bigger loss. I'll sell KLIC around today's open.

Well i thought I had you figured out, but guess not.  I thought you liked when a price did not drop after a large increase.  It seems to be in a consolidation phase.  I will cont to hold and see what happens

Nice ER this morn