Note: The material presented in this commentary is provided for informational purposes only and is based upon information that is considered to be reliable. However, neither PSW Investments, LLC d/b/a PhilStockWorld (PSW) nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither PSW nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance, including the tracking of virtual trades and portfolios for educational purposes, is not necessarily indicative of future results. Neither Phil, Optrader, or anyone related to PSW is a registered financial adviser and they may hold positions in the stocks mentioned, which may change at any time without notice. Do not buy or sell based on anything that is written here, the risk of loss in trading is great.
This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities or other financial instruments mentioned in this material are not suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only intended at the moment of their issue as conditions quickly change. The information contained herein does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies. Before investing, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Contact us: support@philstockworld.com
© Copyright - PSW, LLC.
2024
August 5th, 2010 at 12:41 pm
Overnight Trade: Brooks Automation Inc. (BRKS)
Analysis: We are looking at a semiconductor equipment company for one of our first Overnight Trades for today. The semiconductor equipment industry has been absolutely fantastic this quarter. Since the beginning of July, in the semiconductor equipment industry, 19/21 reporting companies have beaten expectations. Brooks Automation provides automation, vacuum, and instrumentation solutions to the semiconductor industry. The company also provides products to the data and solar industries. The company is set to report EPS at 0.21 vs. one year ago’s quarterly loss at -0.37.
The company, additionally, got an upgrade from "sell" to "hold" by S&P recently as well. S&P analyst Angelo Zino commented, "We think greater memory spending is driving demand from semiconductor (manufacturing) customers and believe inventory levels across the supply chain remain at healthy levels."
Things look very good for Brooks Automation, and the company is going to beat it appears. Now, typically, this would mean the stock would either have seen a huge rise into earnings or a huge rise the day before. Neither has happened. BRKS looks to be quite a nice play for us to get into today.
Every industry that Brooks is connected to is doing exceptional. The solar industry is booming, semiconductors have huge demand, and even data storage is doing very well.
Further, the company has a desperately low P/E ratio at just over 6. The company’s industry average is around 15. With that low P/E, a small earnings beat will be taken very well and increase share prices heavily. The company should definitely grow on a beat.
Get in today and make some money on Brooks Automation!
Entry: We are looking to enter at 7.85 – 7.95.
Exit: We are looking to exit tomorrow morning.
Good Investing,
David Ristau