I cannot understand why this stock isn't higher than it is. Constantly posting favorable press releases, (unfortunately most of them I do not understand) and the stock is stuck in a very narrow trading range. MEMS technology should be in every high tech device, and this stock should be much higher.
Main catalyst s/b return to profitability. Chart indicates stock jumped after 2013 Q1 earnings release in late April, and guidance of profitable June. 2014 quarter should be another positive this April. Too, STM is looking for 10% oper. margin by mid-2015, which translates into annualizes EPS of over $0.60. & per sh cash flow of $1.70 Mgt. intends to maintain div yield of at least 5%.
I think when you lookout over other industries (not including the medical industry) we're talking another 14 trillion in other industrial applications. I guess one can state that we're not in Kansas anymore. Patience is key here, Plus, one must consider the amount of money that STM is still placing into R&D. In my opinion, I think we're looking at a $17- $20 share price before the end of the year.
I saw this guy ( Dr. Michael Robinson) rant and rave about MEMS as a teaser to buy his newsletter. Applications ranged from preventing heart disease, to oil drilling, to bridge sensors, to military applications, to city planning and the list simply kept going. He estimated that revenue from MEMS is about to surge 63,000% between now and 2017 and create $7 TRILLION in new wealth. I was extremely impressed with the level of knowledge of this person and I thought it was some small company that controls over 800 MEMs related patents, waiting to explode in price. But a quick google search told me that the company is no other than STM which is almost a $8B market cap company. Now, if what he said was true, I can't imagine why the CEO does not sell the future prospects during ERs and analyst meetings. And the stock languishes down here for the past year. Something does not seem right. I wish there were leaps on this ticker to buy options on the cheap but does anyone believe this will become the next AAPL when the MEMS revolution starts gathering momentum?