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

[David Randolph]

We had a small doji on AMKR yesterday, as the NDX couldn't hold above the positive line. No new technical or fundamental information, I'll keep holding AMKR.

[David Randolph]

AMKR acted as expected yesterday, closing back above $10.50. No news out. Results will be released on February 7 and I'll hold through earnings.

[David Randolph]

Back below $10.50 by a touch, so the $10.5 technical level is losing significance.

AMKR is a company trading at just 10 times 2007 estimated earnings and its industry, the Semiconductor - Integrated Circuits, trades at 26 times earnings. I don't see a valid reason for such a deep discount (the only one being that fundamentals turned too fast and unexpectedly, so the stock, although being up about 100% over the last 3 months, is still catching up to the dramatic change in fundamentals).

I'll keep holding AMKR.

[David Randolph]

Back below $10.50 by a touch, so the $10.5 technical level is losing significance.

Yes, back above $10.50, closing at $10.56, on 2.3 million shares changing hands.

Results will be out on February 7, I have a 14% profit on AMKR and I'll keep holding.

[setravis]

Technicals look strong for Q1 & Q2

52wk Range: 4.61 - 13.09
Volume: 2,875,527
Avg Vol (3m): 3,526,380
Market Cap: 1.88B
P/E (ttm): 11.80

Technicals
Last Price Quote is:
0.89%above 13-day MA
8.48%above 50-day MA
RS Rating: 96 

Fundamentals
Earnings Expected on Feb 7

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]

Again, nothing new on AMKR, as it went down 0.28% to $10.53. Results will be out next Wednesday, I have no reason to sell before that date (and hopefully I'll have no reason to sell after either). 

[David Randolph]

Nothing new for AMKR, just leaving the updated chart, I'll keep holding the stock.

[David Randolph]

It was another day with no history for AMKR. Earnings will be out next Wednesday, I'll keep holding.

[David Randolph]

After a couple of weeks of very narrow trading, AMKR finally decided to start a move. And the decision was to go north, according to the fundamentals (as you can read on the other pages of this thread).

Results will be out next Wednesday, I'll hold the stock through them with confidence.

[bjc]

I'm eyeing AMKR.  Planning on selling half IMOS and diversifying this play a little bit, as the fundamentals are also amazing on this company. 

Chart looks great..MACD bullish cross highly likely Monday...I'm quite fond of the way it's riding the 50 ma up.  I don't think it's going to stay so close to it for long 

edit:  bought today at $11.48

[David Randolph]

Nice volume of 3.2 million shares changing hands on AMKR this Friday. The stock is back above $11.

But I think it is worth something like $30, as you can read on the rest of this thread. I wonder if it will make another gap up above $12 when it reports 4th quarter results this Wednesday.

Time will tell, but I'm confident (the worst case scenario is already priced in by the low valuation) and I'll keep on holding AMKR through earnings.

[David Randolph]

AMKR is approaching the $12 short term resistance level, but you know, bull trends have no resistance.

The perfect scenario would be for the stock to gap up above $12 after the 4th quarter earnings results, which will be released tomorrow right after the market close.

That's my expectation and I'll keep on holding AMKR.

[la-onda]

Amkor Technology upgraded to "buy"

Tuesday, February 06, 2007 1:35:12 AM ET
American Technology Research

NEW YORK, February 6 (newratings.com) - In a research note published yesterday, analysts at American Technology Research upgrade Amkor Technology (AMKR.NAS) from "neutral" to "buy."

cheers
O.

[David Randolph]

Hi la-onda, those upgrades usually don't work on AMKR, remember when JP Morgan upgraded the stock?

But perhaps the upgrades come from the company whispering that 4th quarter results will beat expectations, we'll know about that today after the close.

Estimates are calling for 22 cents EPS on $683.75 M in revenues.

I see AMKR as trading at a deep discount relative to its industry peers and I'll hold through earnings. I expect it to gap up over the $12 resistance level at tomorrow's open, that would be the perfect technical development.

[basonista]

Earnings out.  Big drop when earnings announce but a lot of it gained back already.

Amkor Reports Fourth Quarter Sales and Record Full Year 2006 Sales and Net Income
Wednesday February 7, 4:10 pm ET


CHANDLER, Ariz.--(BUSINESS WIRE)--Amkor Technology, Inc. (NASDAQ: AMKR - News) reported fourth quarter 2006 sales of $683 million, up 6% from the fourth quarter of 2005 and down 4% sequentially from the third quarter of 2006. Amkor's fourth quarter 2006 net income was $59 million, or $0.30 per diluted share, compared with net income of $54 million, or $0.30 per diluted share, in the fourth quarter of 2005 which included a $9.9 million tax benefit.


For the full year 2006, Amkor's net sales were a record $2.7 billion, up 30% over 2005. Amkor's full year 2006 net income was a record $170 million, or $0.90 per diluted share. For 2005, Amkor had a net loss of $137 million, or ($0.78) per share, which included a charge of $50 million for legal settlements.

"One year ago we commenced a process of refocusing Amkor for long-term success, with a commitment to streamline our corporate organization, enhance operational effectiveness, improve profitability and strengthen our cash flow," said James Kim, Chairman and Chief Executive Officer. "During the past year our management team kept a sharp focus on these objectives. We maintained a disciplined approach to capital spending; we enriched our product mix; we leveraged our technological leadership; we significantly increased our Flip Chip related business; we successfully expanded our test and bumping capabilities in Singapore; we are building scale in China; we improved gross and operating margins; and we continued to reposition our capital structure and reduce debt.

"I am pleased with the operating performance we achieved in 2006 and the corresponding improvement in our financial results. We have made excellent progress in reaching our objectives and I believe we have established a solid foundation for long-term profitable growth," said Kim.

"Our fourth quarter saw continued strong demand in 3D package solutions and Flip Chip packages for high performance applications, including all three major game consoles, networking and communications modules, offset by a decline in demand for packages supporting wireless and other mobile devices," said Kim. "Our test business strengthened during the fourth quarter as we continued to build scale in Singapore and increase our capabilities in Korea."

"Following an extended period of exceptionally strong growth, we expect to experience a seasonal decline in the first quarter of 2007," said Kim. "As we go through 2007, we will continue to exercise discipline in our capital investments, with an ongoing focus on improving our productivity, building our capabilities in technology and key growth areas, and strengthening our IT systems. I believe this will position Amkor to achieve sustainable profitability and generate positive free cash flow, which should allow us to further de-lever our capital structure."

"While fourth quarter sales were in the mid range of guidance, our gross margin of 25.3% was better than expected, principally as a result of a change in product mix," said Ken Joyce, Amkor's Chief Financial Officer.

"Our growth in Flip Chip business during the quarter was partially masked by a mix-shift, as a greater proportion of substrates were consigned by customers, instead of procured by Amkor. The associated reduction in materials reduced the average selling price for Flip Chip packages but increased gross margin."

"SG&A expenses for professional fees associated with the investigations of our historical stock options granting practices were approximately $2.5 million in the fourth quarter, compared with $10.2 million in the third quarter," said Joyce. "During the fourth quarter, we also increased our employee bonus and profit sharing accruals in recognition of our improved financial performance. Excluding the impact of these adjustments, fourth quarter SG&A was up slightly from the third quarter."

"Capital additions totaled $55 million in the fourth quarter and $299 million for the full year. Our capacity expansion has been focused on strategic growth areas, including wafer bump, wafer level packaging, Flip Chip and test," said Joyce. "We are currently targeting first quarter 2007 capital additions of $70 million and full year capital additions in the range of $250 - $300 million. We are prepared to adjust these figures depending on business conditions."

"We have achieved positive free cash flow for the past five quarters, and given our current view of business conditions, we anticipate this trend should continue throughout 2007," said Joyce. "We plan to use existing cash resources to retire the remaining $142 million in 5% convertible notes at maturity in March 2007."

For 2007, we anticipate an effective tax rate of 10% which reflects the utilization of U.S. and foreign net operating loss carryforwards and tax holidays in certain of our foreign jurisdictions. At December 31, 2006, Amkor had U.S. net operating losses available for carryforward totaling $363 million expiring through 2025. Additionally, at December 31, 2006, we had $51 million of non-U.S. operating losses available for carryforward, expiring through 2011.

Selected operating data for the fourth quarter 2006 is included in a section before the financial tables.

Business Outlook

On the basis of our customers' forecasts, we have the following expectations for the first quarter of 2007:

Sales down 4% to 8% from the fourth quarter of 2006
Gross margin of approximately 22% to 23%
Net income in the range of $0.13 to $0.18 per diluted share