Stronger Semiconductor 2018 Than Previously Forecast In a move reminiscent of the continual upward revisions to semiconductor market forecasts that characterized 2017, market watcher IC Insights has increased its forecast for semiconductor industry growth this year to 15 percent from a previous projection of 8 percent.
Dow has drop from 28,000 to 24,000 and now rebound is imminent. It will be lead by technology stock. Some says Dow will reach 30,000 and beyond after major consolidation in Dow which had already happen.
Referring to your article 'Can you recommend shares for me to buy?', I would like to recommend you with Malaysian Pacific Industries (3867:MPI).
Why MPI?
- PE is below 12.
- Latest Quarter Profit is showing an improvement.
- Share Price have taken a beating with a YTD decline of 33% provides an opportunity for a bargain. The plunge in share price is due to an increase in raw material cost as Gold and Copper's price have increased lately as well as the recent appreciation of MYR against USD which affected profits.
- I believe it has a bright profit growth prospect as the company is primarily involved in automotive semiconductor industry and based on the 2017's AR, MPI saw several new product launches into industrial applications including those for data centres.
- For almost everyday, the Global news talks about the continuous advancement in driver-less vehicles, Industrial 4.0 and IOE. All these are key drivers to the growth in MPI.
- Therefore, I trust that MPI belongs to an industry that will be relevant for a foreseeable future and should be viewed as a long-term investment.
- It's FCF is one of the highest among all public listed semiconductor companies in M'sia. However, based on PE, it is lagging significantly compared to its peers. The main reason MPI is not fetching a high NP Margin as compared to its peers despite having the highest revenue in the sector is due to a high depreciation charge (a non-cash item). Once it's PPE is fully depreciated and depreciation charges decrease, it will show an improving profit. Recently, MPI has been investing heavily in CAPEX which could add to Depreciation charges but I do believe it can be offset with a higher revenue from its investments.
You may not entirely agree on the opinions of my recommendation but I will truly appreciate if you could reply with your thoughts on MPI. It will be an honour to have your feedback to improve my investments skills.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
s3eve
78 posts
Posted by s3eve > 2018-03-12 15:06 | Report Abuse
There will be an uptrend to 10.x... Seeing the market rally a bit...