3SOF

AMKR keeps moving nicely to be upside, definitely leaving the $12 resistance level behind.

I believe the worries that make AMKR undervalued (in terms of revenue and EPS multiples) will unwind over the following quarters, as I see strong demand and not so bad corporate governance. The company just retired some convertible notes, I guess that shows respect and the will to work for the common shareholder.

I'll continue holding AMKR.

Small correction on AMKR, I'll keep holding it.

Nothing changed, I'll keep holding AMKR.

AMKR tagged the base of its channel today on intraday weakness.  Looked like a nice entry, so I jumped back in.  Fortuantely it managed to close above 12.15 resistance (though only just) Provided the market doesn't take a beating, I think i should continue to do well....

It is boring like hell, but I can't call the retest of the $12 support, prior resistance, anything else but "normal market behavior". I'll keep holding AMKR.

Analysts are slowly but surely raising their estimates for AMKR, and the future looks brighter than ever for this company:



Look how the 2008 EPS estimate rose from $0.96 to $1.25, recognizing the probable earnings growth trend going forward. As people build more confidence in AMKR's management ability to deliver strong results, the more the stock will close the valuation gap between AMKR and its industry peers in terms of earnings and revenue multiples:



I'll continue holding AMKR.

 
AMKOR TECHNOLOGY INC. (AMKR.O: Quote, Profile , Research)

Current Prior Rating Overweight Neutral
--J.P. Morgan Securities said it upgraded the microchip testing and packaging company as the stock is undervalued, consensus estimates are overly pessimistic, and cyclical fundamentals are bottoming.
--The brokerage said it does not expect Amkor to be the target of an equity buyout, but a successful purchase of one or more of its competitors is likely to be a positive catalyst for the stock.
--JP Morgan raised its 2007 GAAP earnings estimates on the company to $1.27 from $1.23 and for 2008 to $1.67 from $1.61 on the expectation that Amkor will reduce its debt payments through additional capital structure improvement.

AMKR upgraded by JPM, look set to break to new highs 

AMKOR TECHNOLOGY INC. (AMKR.O: Quote, Profile , Research)

Current Prior Rating Overweight Neutral

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--J.P. Morgan Securities said it upgraded the microchip testing and packaging company as the stock is undervalued, consensus estimates are overly pessimistic, and cyclical fundamentals are bottoming.

--The brokerage said it does not expect Amkor to be the target of an equity buyout, but a successful purchase of one or more of its competitors is likely to be a positive catalyst for the stock.

--JP Morgan raised its 2007 GAAP earnings estimates on the company to $1.27 from $1.23 and for 2008 to $1.67 from $1.61 on the expectation that Amkor will reduce its debt payments through additional capital structure improvement. (Reporting by Neha Singh in Bangalore)

sounds good IMHO! David, any comments from your side?

tia
O.

Amkor Refinances $300 Million Term Loan
Monday April 2, 5:47 pm ET
CHANDLER, Ariz.--(BUSINESS WIRE)--Amkor Technology, Inc. (Nasdaq: AMKR - News) today announced that it's wholly owned Korean subsidiary, Amkor Technology Korea, Inc., has entered into a $300 million, 7-year secured credit facility with Woori Bank, a member of Woori Financial Group (NYSE:WF - News), one of the largest financial institutions in Korea. The loan will be guaranteed on an unsecured basis by Amkor Technology, Inc. The loan bears interest at Woori's base rate plus 50 bps (currently 6.6%, or approximately LIBOR + 125 bps) and amortizes in 28 equal quarterly payments through April 2014. The Woori loan remains subject to the approval of the Bank of Korea. Proceeds of the Woori loan, together with prepayment fees and accrued and unpaid interest, will be used to repay Amkor's existing $300 million second lien term loan, due October 2010, which bears interest at a rate of LIBOR + 450 basis points (currently 9.9%). This transaction will fully discharge all of Amkor's obligations under the second lien term loan and fully discharge subsidiary guarantees and collateral securitizing the second lien term loan. "In commencing this relationship with Woori Financial Group, we are expanding our banking relationships to include a strong financial partner in Asia," said Joanne Solomon, Amkor's Senior Vice President, Finance. "We are pleased with the structure and terms of this facility, which should allow us to substantially reduce our annual interest expense."
In connection with the early repayment of the second lien term loan, Amkor expects to record a charge of approximately $16 million in the second quarter of 2007, including $9 million in prepayment fees and $7 million to write off unamortized deferred debt issuance costs. We expect to incur approximately $2 million in debt issuance costs in connection with the Woori loan, which amount will be funded from existing cash.

Good morning La-onda, it seems JP Morgan knew about today's news:

QuoteJP Morgan raised its 2007 GAAP earnings estimates on the company to $1.27 from $1.23 and for 2008 to $1.67 from $1.61 on the expectation that Amkor will reduce its debt payments through additional capital structure improvement.

And the news today:

• Amkor Refinances $300 Million Term Loan
Business Wire (Mon 5:47pm)

One of AMKR's weak spots is the balance sheet, since the current ratio is just 1.35 and there are $1.82 B in long term debt. This news helps to ease the debt burden for this company. Without the debt AMKR would be extremely profitable, for example, in 2006, instead of $0.9 EPS, it would have earned more than double that, $1.85 EPS.

But of course, debt is there and it won't go away, it must be refinanced and paid back to increase profitability. Today's news is another step in that direction.

I'll keep holding AMKR.

It looks like JP Morgan provided some help in showing investors how AMKR is undervalued here, trading at just 10.7 times JPM's EPS estimates for 2007. The stock finally responded, up 5.7% on volume of 5.4 million shares traded.

First AMKR will close its valuation gap. And then we'll see how it grows from there. But there's no doubt AMKR is a HOLD here.

AMKR broke through key resistance at $13.10 as can be seen on the 2 year weekly chart, is now making new 2 year highs!!  And it just seems like it goes from strength to strength here....

Awesome

As you know I've been working on a valuation model, and I've applied that model to AMKR. Here are the results:



Basically what this thing tells me is that with the current fundamental information I estimate AMKR will rise 36.5% a year, on average, for the next three years.

If line "share price CAGR" says a number above 16%, the stock is attractive, if it is below that, the stock is unattractive. The white lines are our working variables, that is, the things that can change going forward. The yellow lines are automatically calculated or already known facts.

So, for example, if we manipulate the first line, the "initial share price", with the rest constant, we see that AMKR goes from "YES" to "NO" (as a reply to the question "Attractive?") when the stock crosses $22.40. That would be my selling point according to this model.

As it is now, AMKR is very attractive and I'll keep holding it.

(now I'm thinking, I could have a line with that "$22.40" optimal selling point, and the percent gain from where we are today to that point - still working on this )

David,

So glad you came back to the site and are devoting sooooooooo much time and effort. With the recent gains I will continue to be a pioneer member.

basanlas

I'll reiterate that sentiment...Your work is top-notch! Putting a sell-point in your analysis would be a great addition.. I always find it difficult knowing when topullthe trigger.