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Maxim Integrated Products and Other Semiconductors Stocks Making Big Moves on September 17, 2012
The Nasdaq has declined 0.2%, the S&P 500 is trading down 0.2% and the Dow has fallen 0.2%, marking a bad morning for the market.
The Semiconductors sector (XLK) is relatively unchanged on a bad day for the market overall. The current biggest movers in the sector are:
Forex Broker Summary: UFXMarkets
ChipMOS (Nasdaq:IMOS) has fallen 5.9% and is currently trading at $14.74 per share. So far today, the company's volume is 67,588 shares, in keeping with the average volume over the past three months. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. In making a decision about a potential or existing investment, valuation ratios are useful as a basis for seeing whether the stock price is too high, reasonable, or a bargain. The price/sales ratio measures a company's stock market value by its total revenues or alternatively, a company's price per share by its revenue per share. IMOS has a P/S ratio of 0.78, on the low end. Coupled with high relative strength in the previous twelve months, a low P/S ratio is one of the most potent combinations of investment criteria. A limitation of the P/S ratio is that the price component measures only stock market captialization, while sales are a function of the entire capital structure, potentially leading to wide differences between levered and unlevered companies.
Falling 4.2%, Volterra (Nasdaq:VLTR) is currently at a share price of $22.73. The company's volume is currently 468,911 shares. This is greater than yesterday's volume of 336,330 shares. Price change alone is not enough to know how a stock is doing. Volume is an important secondary indicator used to confirm trends suggested by price movement. While investment valuation ratios are useful tools in estimating the attractiveness of an investment, remember that it is important to look at a company's historical performance and compare the company ratios with its competitors and industry overall. The price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). VLTR has a P/E ratio of 25.5, high compared to the industry average of 14.5. Usually, if a stock has a high P/E ratio, it indicates that the market expects the company to grow earnings quickly in the future. A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: Profit With The Power Of Price-To-Earnings
At $36.38, Veeco Instruments (Nasdaq:VECO) has slipped 3.7%. The company's volume is currently 149,335 shares for the day, 0.3 times the average daily volume. Volume is an important indicator because it indicates how significant a price shift is. A wide array of ratios can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. The price/earnings to growth (PEG) ratio compares a company's P/E ratio to its earnings-per-share growth rate, which tells you whether or not you are getting a good value when purchasing a stock with a high price/earnings ratio (P/E ratio). VECO's PEG ratio is 1.17. While P/E ratios are important indicators of market value, a high P/E in and of itself is not bad because it may indicate a company whose earnings are growing very rapidly, so many investors look at the PEG ratio in order to get an idea of whether or not a particular P/E ratio is justified by underlying earnings growth.
Currently trading at $23.75 per share, First Solar (Nasdaq:FSLR) has fallen 3.5%. The company's volume for the day so far is 2.6 million shares. If a stock price moves on high volume, this means that the change is a significant one. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The price/book value ratio is calculated by dividing the current stock price by the company's book value per share. FSLR's stock is trading for less than its book value as can be seen from it's P/B value of 0.61. This is due to one of two possibilities: that the stock is being unfairly or incorrectly undervalued by investors because of some transitory circumstance and represents an attractive buying opportunity at a bargain price or that the market's low opinion and valuation of the company are correct, at least over the foreseeable future. P/B value ratios are particularly useful to value investors, distressed or "vulture" investors, or any other investors purchasing beaten-down securities but are less useful to investors focused on growth stocks, purchasing IPOs, or investing in technology or other "asset-lite" companies. SEE: How Buybacks Warps The Price-To-Book Ratio
Cavium (Nasdaq:CAVM) is trading at $35.31 per share, down 2.5%. The company's volume is currently 111,248 shares for the day, 0.1 times its average over the past three months. Volume indicates the level of interest that investors have in a company at its current price. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The debt ratio is calculated by dividing total liabilities by total assets. CAVM's debt ratio of 20.6% is on the low side. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
GT Advanced Technologies (Nasdaq:GTAT) is currently trading at $6.68 per share, a 2.5% increase. So far today, two million shares of the company's stock have changed hands. This is about the same trading activity as there was yesterday. If a stock price makes a big move up or down, volume lets us know the significance of that move. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The debt-equity (D/E) ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. GTAT has a debt-equity ratio of 42%, which is on the low side. Companies with low D/E ratios are more attractive to investors because they are better able to protect their business interests in times of decline. This easy-to-calculate ratio provides a general indication of a company's equity-liability relationship and is helpful to investors looking for a quick take on a company's leverage.
Slipping 2.2%, Maxim Integrated Products (Nasdaq:MXIM) is currently trading at $27.56 per share. So far today, the company's volume is 386,850 shares, 0.2 times its current daily average. A stock's volume conveys how excited investors are about it. Valuation ratios include the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. A company's capitalization (not to be confused with its market capitalization) is the term used to describe the makeup of a company's permanent or long-term capital, which consists of both long-term debt and shareholders' equity. The capitalizion ratio of 0.2% is on the low end. Low leverage is a significant balance sheet strength, a sign of a less risky investment. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
The Bottom Line The nature of the market is such that stocks will have good days and bad days. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.
The Semiconductors sector (XLK) is relatively unchanged on a bad day for the market overall. The current biggest movers in the sector are:
| Company | Market Cap | Percentage Change |
| ChipMOS (Nasdaq:IMOS) | $529.1 million | -5.9% |
| Volterra (Nasdaq:VLTR) | $604.2 million | -4.2% |
| Veeco Instruments (Nasdaq:VECO) | $1.48 billion | -3.7% |
| First Solar (Nasdaq:FSLR) | $2.14 billion | -3.5% |
| Cavium (Nasdaq:CAVM) | $1.8 billion | -2.5% |
| GT Advanced Technologies (Nasdaq:GTAT) | $773.8 million | +2.5% |
| Maxim Integrated Products (Nasdaq:MXIM) | $8.22 billion | -2.2% |
ChipMOS (Nasdaq:IMOS) has fallen 5.9% and is currently trading at $14.74 per share. So far today, the company's volume is 67,588 shares, in keeping with the average volume over the past three months. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. In making a decision about a potential or existing investment, valuation ratios are useful as a basis for seeing whether the stock price is too high, reasonable, or a bargain. The price/sales ratio measures a company's stock market value by its total revenues or alternatively, a company's price per share by its revenue per share. IMOS has a P/S ratio of 0.78, on the low end. Coupled with high relative strength in the previous twelve months, a low P/S ratio is one of the most potent combinations of investment criteria. A limitation of the P/S ratio is that the price component measures only stock market captialization, while sales are a function of the entire capital structure, potentially leading to wide differences between levered and unlevered companies.
Falling 4.2%, Volterra (Nasdaq:VLTR) is currently at a share price of $22.73. The company's volume is currently 468,911 shares. This is greater than yesterday's volume of 336,330 shares. Price change alone is not enough to know how a stock is doing. Volume is an important secondary indicator used to confirm trends suggested by price movement. While investment valuation ratios are useful tools in estimating the attractiveness of an investment, remember that it is important to look at a company's historical performance and compare the company ratios with its competitors and industry overall. The price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). VLTR has a P/E ratio of 25.5, high compared to the industry average of 14.5. Usually, if a stock has a high P/E ratio, it indicates that the market expects the company to grow earnings quickly in the future. A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: Profit With The Power Of Price-To-Earnings
At $36.38, Veeco Instruments (Nasdaq:VECO) has slipped 3.7%. The company's volume is currently 149,335 shares for the day, 0.3 times the average daily volume. Volume is an important indicator because it indicates how significant a price shift is. A wide array of ratios can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. The price/earnings to growth (PEG) ratio compares a company's P/E ratio to its earnings-per-share growth rate, which tells you whether or not you are getting a good value when purchasing a stock with a high price/earnings ratio (P/E ratio). VECO's PEG ratio is 1.17. While P/E ratios are important indicators of market value, a high P/E in and of itself is not bad because it may indicate a company whose earnings are growing very rapidly, so many investors look at the PEG ratio in order to get an idea of whether or not a particular P/E ratio is justified by underlying earnings growth.
Cavium (Nasdaq:CAVM) is trading at $35.31 per share, down 2.5%. The company's volume is currently 111,248 shares for the day, 0.1 times its average over the past three months. Volume indicates the level of interest that investors have in a company at its current price. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The debt ratio is calculated by dividing total liabilities by total assets. CAVM's debt ratio of 20.6% is on the low side. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
GT Advanced Technologies (Nasdaq:GTAT) is currently trading at $6.68 per share, a 2.5% increase. So far today, two million shares of the company's stock have changed hands. This is about the same trading activity as there was yesterday. If a stock price makes a big move up or down, volume lets us know the significance of that move. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The debt-equity (D/E) ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. GTAT has a debt-equity ratio of 42%, which is on the low side. Companies with low D/E ratios are more attractive to investors because they are better able to protect their business interests in times of decline. This easy-to-calculate ratio provides a general indication of a company's equity-liability relationship and is helpful to investors looking for a quick take on a company's leverage.
Slipping 2.2%, Maxim Integrated Products (Nasdaq:MXIM) is currently trading at $27.56 per share. So far today, the company's volume is 386,850 shares, 0.2 times its current daily average. A stock's volume conveys how excited investors are about it. Valuation ratios include the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. A company's capitalization (not to be confused with its market capitalization) is the term used to describe the makeup of a company's permanent or long-term capital, which consists of both long-term debt and shareholders' equity. The capitalizion ratio of 0.2% is on the low end. Low leverage is a significant balance sheet strength, a sign of a less risky investment. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
The Bottom Line The nature of the market is such that stocks will have good days and bad days. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.
by
Investopedia Staff
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