The Kelly Letter invested in Applied Materials a while back for several reasons.
It’s the leader in semiconductor manufacturing equipment, which is a great business base but fraught with boom-bust cycles. To make its returns steadier, the company shrewdly started moving into flat panel displays and then solar. Now, with a solid stronghold in each, it has a fantastic portfolio of business.
The solar division is already earning its keep. AMAT gained 7.6% yesterday on news that the company had received a $1.9 billion order to install 15 solar equipment production lines in June. That’s the biggest order in its history. The equipment should be able to produce solar electricity on the scale of gigawatts.
The Financial Times wrote last night: “Analysts said the deal for the world’s largest supplier of equipment for the semiconductor industry was about five times bigger than any order it had ever received in its core business.”
AMAT’s price chart is looking good, too. The stock bottomed at $16.13 on Jan. 11, and has now marched 26% higher since then. It closed yesterday at $20.32 in what looks to be an attempt to break through the $20-$21 resistance zone. Doing so would put the stock at its highest since it broke through that same zone as support at the end of October. The last time it broke through that zone heading up was in July, when it ran to $23 by early August, then broke down.
Above $23, AMAT doesn’t hit resistance until about $27. Morningstar puts AMAT’s fair value at $25 and suggests selling at $32.50.
Look insideThe Kelly Letter
Your email is never published nor shared. Required fields are marked *
You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
Here are your three options:
Option 1: Annual Subscription
For just $236.97 per year, you’ll receive everything listed above to completely upgrade the way you manage your investments, including a copy of The 3% Signal. This is what I recommend:
Option 2:Monthly Subscription
If you'd like to try The Kelly Letter without paying the full year, you can pay $19.97 per month, but it will not include a copy of The 3% Signal :
Option 3:Free Email List
If you'd like to hear more from me but aren't ready to part with any money yet, you're welcome to join my free email list:
Join Matt and thousands of other rational investors to invest without stress.
Subscribe to The Kelly Letter now!