All aboard the KLIC chip train

Kulicke & Soffa Industries are a 3Billion dollar company in the chip sector that have been around for a long time and look to benefit from the global chip shortage. They have a forward PE of 15.7 a price to sales of 4 and are predicting revenue increases of 78% for 2021. They also have a small dividend of 1.1% as a bonus. This stock price will be considerably higher in 12 months.

1 Like

They have very cyclical earnings…

Would be very hard to judge investment at current prices , maybe before 100% jump it would make more sense …

1 Like

Where does that graph get the data from because yahoo finance forecasts expect earnings per share to double in 2021, not sure how accurate a forecast will be but it would give a much lower PE than that graph shows by the year end. They have given a positive surprise in earnings 3 out of the last 4 quarters too

Each company has different amounts of analysts tracking it, for instance here we see 4 different analysts .

If you check Yahoo finance.

Numbers of analyst match, just that fastgraphs shows it in nice graph.

So estimates are similar , number of analysts is low, very speculative IMHO.

Technically speaking PE is low compared to growth for 2021.

However , million dollar question , what comes in 2022., and later…

1 Like

Nice work on the graphs mate this looks a great tool. The low PE compared to its growth is a massive driver in price appreciation in the medium term for sure. Is that graph showing a potential price if $112 in a year? For me it looks great for 12months and if I keep up to date with quarterly and annual reports it can give an indication of how long to hold for past that

Wish I could take credits, but that is just a fundamentals tool.

Well that is the trick part. It shows potential of 112$ due to growth estimates, however if quarter reports show weakness for 2022. and forward, you could see collapse of the price. However if they affirm strong outlook beyond 2021, for 2022./2023. It could skyrocket the price.

But in any case speculative investment at this levels.

Good luck! :beers:

1 Like

I will just sell when it gets to $110 then just to be on the safe side. Easy money this :wink:

It has good potential, I have some in my portfolio, for the exact potential growth figure it may be hard to call.

1 Like

This seems to be on a break out, still undervalued IMHO

Those earnings numbers for klic were absolutely fantastic. This is a great stock for the next few years chip supercycle

1 Like