E Kulicke And Soffa Industries - A Fair Value Report

Kulicke And Soffa Industries - A Fair Value Report

Basis
This report covers the company’s fiscal year ending September 30, 2020. Listed earnings, and metrics utilizing earnings, are for that specific 12 month time period unless otherwise noted. Unaudited quarterly financial statement information is not apart of, nor included in, this report.

Risk
Past and future gains contained herein are based on actual and anticipated earnings, actual and anticipated dividends, and actual and anticipated price appreciation. Valuations, while given as a specific amount, are always within a valuation range. Investors should be aware that any investment has the potential for loss, and past performance is no guarantee of future results.

What They Do
Kulicke and Soffa designs, manufactures and sells capital equipment and expendable tools used to assemble semiconductor devices, including integrated circuits (“ICs”), high and low powered discrete devices, light-emitting diodes (“LEDs”), and power modules. They also service, maintain, repair and upgrade the equipment they sell. Industry peers include Lam Research Corporation (Nasdaq: LRCX) and Amkor Technology, Inc. (Nasdaq: AMKR).

Short-Term Target
My current short-term target for the stock is $27.60 with an initial trailing stop set at $31.73. Based on a recent price of $32.21, upward price movement will find resistance at $33.06. Downward price movement will find support at $31.13 and again at $30.05, with final support found at $28.41.

One-Year Growth Price Target
My one year growth price target is actually a price target range, determined by adding year over year earning growth to the prior year annual dividend yield and dividing the result by the current annual price to earnings ratio.

For this stock, my current one year growth price target range is $38-$40.

Volatility Adjustment
There are different metrics available to help investors determine the volatility of a particular stock as compared to the volatility of the market as a whole. To me, the beta ratio is the metric that is the most representative of a stock’s volatility. A beta ratio of less than 1 means that the security’s price will be less volatile than the market, while a beta ratio greater than 1 indicates that the security’s price will be more volatile than the market.

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Disclaimer: I am a long-term, buy and hold investor, practicing a value investing philosophy. I am not a licensed or registered investment professional. I currently have NO investment position ...

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