Time will tell. His time horizon is longer than a day or two.
Low analyst target $20, high target $28. Bill Miller calls it a no-brainer buy.
Can't quite figure out TER today. Down 5% after this report (all beats): Reports Q4 (Dec) earnings of $0.13 per share, $0.03 better than the Capital IQ Consensus of $0.10; revenues fell 1.6% year/year to $318 mln vs the $310.21 mln Capital IQ Consensus. Co issues upside guidance for Q1, sees EPS of $0.23-0.29 vs. $0.18 Capital IQ Consensus Estimate; sees Q1 revs of $410-440 mln vs. $353.54 mln Capital IQ Consensus Estimate.
From the last conference call, Joseph Elgindy: "As of the end of our fiscal year we had approximately $22 million remaining under the current program."
M&A activity in the sector in 2015 is already double last year's, so perhaps that is the rising tide even for little KLIC.
"With all of the M&A activity in this sector, many wonder why 2015 was the year for consolidation. Several factors have come into play, such as the high production costs that make it hard for small and medium size companies to successfully compete against the major chip makers. Rising research and development costs also hinder smaller competitors and start ups, especially as the Internet of Things becomes more and more prominent. The increased use of chips in everyday items has forced chip companies to focus on low energy, low cost options, favoring large companies that can take advantage of economies of scale.
Another factor in the M&A activity is the changing international semiconductor market. China has been the world’s leading consumer of semiconductors for the past decade, but relies almost exclusively on foreign imports from countries such as the United States and South Korea. In hopes to become more self-sufficient, this summer Chinese officials announced a plan to invest $160 billion in local chip companies over the next decade, worrying major companies across the world that heavily rely on sales to China. The next five to ten years will be telling for the chip industry, as the Internet of Things progresses and international competition intensifies, possibly leading to even more M&A activity."
“The knee-jerk reaction to sell REITs on the prospects of rising interest rates flies in the face of some long-term data that suggest that REITs can—and have—performed quite well in rising interest rate environments,” notes T. Ritson Ferguson, CEO and co-CIO of CBRE Clarion Securities.