AMKR - Sector: Technology --- Industry: Semiconductor - Integrated Circuits

[nullzero]

Nice little gain there terliso  . To bad you couldnt pocket that 12% gain but it looks like you swinging on the long side so you might come out with even more. TARR reminds me alot of AMKR. I covered TARR for like a 6% profit as well and it had the same situation with TARR delaying filings sinking to low 9s and then bouncing back over 10.

[Terliso]

Covered @ 5.61 profit 6%

went long @ 5.62 this one might come up & possibly fill the gap between 6.85 - 6.92

good trading

A little bit above six could be the target on this one or the 50sma ... AMKR just printed $6.01

[setravis]

Terliso, thanks for your work on the update to this one.
I was unable to be with you all here at 3SOF.
Applaud.....

[Terliso]

No problem Setravis

[joet]

Fantastic H+S pattern oer the past 7 months, gap filled from Feb 9 all of us seem to agree taht AMKR is on its way back to the high 6's at least.   I may see if i can get in under 6 in the morning, or put it on my paper list... sure looks like a solid trade.  Kudos all

Cheers Joe

[sebfr]

hI,

STRONG BUY opportunity..price near major support...Great job guys

Close at 5.40
stop loss at 5.12
target at 7.00

Reward/Risk ratio of 29.6 / 5.4 = 5.48...EXCELLENT

[setravis]

One to watch.....
Sell off seems to be over done !
Good volume

Boom!!!!

AMKOR TECHNOLOGY (NasdaqGS:AMKR) Delayed quote data 

Last Trade: 6.76
Trade Time: 9:54AM ET
Change:  1.71 (33.86%)
Prev Close: 5.05
Open: 6.61
Bid: 6.75 x 1700
Ask: 6.76 x 500
1y Target Est: 8.90

  Day's Range: 6.58 - 6.87
52wk Range: 3.57 - 13.09
Volume: 4,616,568
Avg Vol (3m): 4,951,860
Market Cap: 1.20B
P/E (ttm): 13.29
EPS (ttm): 0.504
Div & Yield: N/A (N/A)

[Terliso]

Amkor Technology, Inc. Earnings Call scheduled for Wed, Nov 8

[setravis]

bizjournals.com
Amkor posts $53M profit, record sales
Wednesday November 8, 5:41 pm ET


Amkor Technology Inc. reported record third-quarter 2006 sales and net income of $53 million.
Revenue hit $714 million, up 30 percent from the third quarter of 2005. Amkor's third-quarter 2006 net income was $53 million, or 27 cents per share, compared with a net loss of $19 million, or 11 cents per share, in the third quarter of 2005. Analysts had predicted net income at 24 cents a share.

 
"We completed a historic third quarter, marking the first time that Amkor's quarterly sales have exceeded $700 million," said James Kim, chairman and chief executive. "Our strong operating performance reflected continued progress in our strategy to enrich our product mix, enhance operating efficiencies, and generate higher returns on our capital investments."

Chandler-based Amkor (NASDAQ: AMKR - News) provides advanced semiconductor assembly and test services.

Published November 8, 2006 by The Business Journal

[setravis]

AP
Amkor Tech Up on Strong Forecast
Thursday November 9, 12:45 pm ET
By Rob Curran, Dow Jones Newswires 
Amkor Technology Stock Up; Earnings, View Unexpectedly Strong


NEW YORK (AP) -- Shares of Amkor Technology Inc. climbed Thursday, after the semiconductor-testing company posted an unexpectedly high third-quarter profit with help from strong demand.
The Chandler, Ariz.-based company also indicated a slowdown in fourth-quarter sales wouldn't be as severe as expected.


Amkor's stock rose $1.05, or 14 percent, to $8.54 in early afternoon trading on the Nasdaq Stock Market. Thursday's strongest level, on heavy volume, was $8.69. On a 52-week basis, there was a high of $13.09 on April 27 and a low of $4.61 on Sept. 27.

Late Wednesday, Amkor said it moved to a third-quarter profit of $52.8 million, or 27 cents a share, from a loss of $19.5 million, or 11 cents a share, a year earlier. Analysts surveyed by Thomson Financial had forecast, on average, earnings of about 24 cents a share.

Revenue surged 30 percent to $713.8 million from $549.6 million, amid seasonal demand from makers of wireless and mobile devices, gaming consoles and other products.

For the fourth quarter, the company expects to post per-share earnings of 20 cents to 24 cents, as compared to the 21 cents that had been expected by Wall Street.

The company also expects sales of $678.1 million to $692.4 million -- still topping the roughly $676.9 million expected by analysts.

In a research note, Lehman Brothers analyst David Egan said he expected a fourth-quarter downturn for semiconductor subcontractors after several quarters of growth because of the cyclical nature of the business. He said the assembly and testing companies were avoiding price increases that hurt business during cyclical troughs in the past.

"Looking forward, we currently believe that there is reason to think that this improved financial performance is sustainable into the downturn and over the next cycle," Egan said.

[setravis]

Amkor Reports Record Third Quarter Sales

AMKOR TECHNOLOGY INC.

The microchip testing and packaging firm late on Wednesday reversed a year-earlier loss and reported strong demand for wireless and other mobile products.

Amkor shares rose 13.5 percent to $8.50 on the Nasdaq.

52wk Range: 4.61 - 13.09
Volume: 16,159,778
Avg Vol (3m): 4,386,990

Support @ $8.30...7.56...7.05
Resistance @ $8.92...9.45...9.65...9.95...10.43

Technicals
Most Actives
Gap Up
Percentage Gainer
MACD is Bullish
Stochastic is Bullish

Last Price Quote is:
19.87%above 13-day MA
27.15%above 50-day MA
RS Rating: 95 

Fundamentals
Key Data:
Market Cap (M): $992.00 
P/E Ratio: 10.78 
PEG Ratio: 0.4 
Next Earnings: 02/07/2007
Last Analyst Rating: Strong Buy

[David Randolph]

1. Introduction

I just want to know the reason behind the latest two enormous gaps on AMKR. I also never understood this semiconductor testing industry very well, why are they needed so much and how come they have such high revenue numbers?

If I listened to Peter Lynch or Warren Buffet, I would stay away from these things, since I don't understand the business. But I'll study the stock anyway.

2. Profile

Amkor Technology, Inc. provides advanced semiconductor assembly and test services in the United States and internationally. (complete profile here)

3. Technical Analysis
3.1. All History Chart



Another fallen angel from the tech bubble. Even on this very long term chart we can see the recent gaps AMKR had.

3.2. Medium Term Chart



As you can see on the chart above, when there's a gap at AMKR, usually the gap is left open for some time and the stock goes in the direction of the gap.

3.3. Short Term Chart



Technically the stock looks bullish. I know one needs to have a lot of courage to buy after such big gaps, but courage and doing the hard thing usually pays in the stock market.

Let's check the fundamentals ...

4. Fundamental Analysis
4.1. Number of Shares Outstanding



The company lost some of its appetite for issuing shares in about 2003, which is a positive development. The current market cap is 178,109,034*$8.85 = $1.58 B.

4.2. Liquidity



Not a great balance sheet, but acceptable.

4.3. Revenues



2006 is going to be the best year ever for AMKR in terms of revenues. Sales are picking up steam. The Price to Sales Ratio is $1.58 B/$2.73 B = 0.58. The industry average is 2.29, so AMKR indeed looks cheap.

4.4. Profits



It's easy to understand those two gaps now, AMKR is completely turning the corner and showing record revenues and strong profits. 2006 EPS is expected to come in at $0.95, so the earnings multiple is $8.90/$0.95 = 9.36. The average earnings multiple for the industry is 28.82 

5. General Overview

Although I'm not familiar with the semiconductor business, I can clearly see that AMKR is massively undervalued. It needs to rise 3 or 4 fold to have the same multiples as its competitors. There can be a cyclical slowdown in the future, but I don't think there's a valid reason for AMKR to be this undervalued.

The market is catching up to the rapid change in fundamentals, and not the other way around. It doesn't get much closer to a sure thing than this.

I'm analyzing 3 stocks everyday, if you would like to receive my work on your mailbox, please register.

[David Randolph]

AMKR had such an incredible turn in fundamentals that the rise in the share price needs to be made in big gaps to keep up. Still way undervalued in my opinion. I want to add this stock to the 3 Stocks on Fire Portfolio.

Ramsburg informed me that he practices always putting a detailed trading plan at the end of each recommendation, so that everyone clearly understands what we're saying. You can find the detailed trading plan at the end of this post.

Here's the study I made on the stock:

«1. Introduction

I just want to know the reason behind the latest two enormous gaps on AMKR. I also never understood this semiconductor testing industry very well, why are they needed so much and how come they have such high revenue numbers?

If I listened to Peter Lynch or Warren Buffet, I would stay away from these things, since I don't understand the business. But I'll study the stock anyway.

2. Profile

Amkor Technology, Inc. provides advanced semiconductor assembly and test services in the United States and internationally. (complete profile here)

3. Technical Analysis
3.1. All History Chart



Another fallen angel from the tech bubble. Even on this very long term chart we can see the recent gaps AMKR had.

3.2. Medium Term Chart



As you can see on the chart above, when there's a gap at AMKR, usually the gap is left open for some time and the stock goes in the direction of the gap.

3.3. Short Term Chart



Technically the stock looks bullish. I know one needs to have a lot of courage to buy after such big gaps, but courage and doing the hard thing usually pays in the stock market.

Let's check the fundamentals ...

4. Fundamental Analysis
4.1. Number of Shares Outstanding



The company lost some of its appetite for issuing shares in about 2003, which is a positive development. The current market cap is 178,109,034*$8.85 = $1.58 B.

4.2. Liquidity



Not a great balance sheet, but acceptable.

4.3. Revenues



2006 is going to be the best year ever for AMKR in terms of revenues. Sales are picking up steam. The Price to Sales Ratio is $1.58 B/$2.73 B = 0.58. The industry average is 2.29, so AMKR indeed looks cheap.

4.4. Profits



It's easy to understand those two gaps now, AMKR is completely turning the corner and showing record revenues and strong profits. 2006 EPS is expected to come in at $0.95, so the earnings multiple is $8.90/$0.95 = 9.36. The average earnings multiple for the industry is 28.82 

5. General Overview

Although I'm not familiar with the semiconductor business, I can clearly see that AMKR is massively undervalued. It needs to rise 3 or 4 fold to have the same multiples as its competitors. There can be a cyclical slowdown in the future, but I don't think there's a valid reason for AMKR to be this undervalued.

The market is catching up to the rapid change in fundamentals, and not the other way around. It doesn't get much closer to a sure thing than this.»

6. Trading Plan

The recommendation is to buy a portion of your capital (in the 3 Stocks on Fire Portfolio's case, it is always 6.66% of equity) in AMKR shares today, below $9.27.

[setravis]

Good David jumping in here,
Could make this pup run on up.....

[nullzero]

Nice pick David! I got in today at 9.33 up already over 3% .