Stocks to Buy #6: UCTT
This is a pure momentum play. Of the stocks I am selecting, this one is the risky one.
UCTT is a company that helps semiconductor fabs run. They sell modules on to OEM companies like Mattson.
UCTT is doing interesting things. First is vertical integration of systems to grow the revenue base. Second is expanding an Asian presence. Moving manufacturing to China for Chinese fabs. Third, cost containment, also via Chinese manufacturing
The result is large sequential earnings growth.
I remain bullish on semiconductors despite possible slowdown in consumer spending. Fabs are operating at 91.2% capacity, which is a strong utilization and typically drives towards expansion.
So this is partly a semiconductor equipment play but focusing on a smaller player with room for growth.
UCTT is a company that helps semiconductor fabs run. They sell modules on to OEM companies like Mattson.
UCTT is doing interesting things. First is vertical integration of systems to grow the revenue base. Second is expanding an Asian presence. Moving manufacturing to China for Chinese fabs. Third, cost containment, also via Chinese manufacturing
The result is large sequential earnings growth.
I remain bullish on semiconductors despite possible slowdown in consumer spending. Fabs are operating at 91.2% capacity, which is a strong utilization and typically drives towards expansion.
So this is partly a semiconductor equipment play but focusing on a smaller player with room for growth.
posted by Andrew at
12:58 PM
1 Comments:
tommrow is earnings. and the tuesday downgrade that casued a $2 dip in the $3.30 breakout above $10 seems like BS. we see monday after the close. boris
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