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Mellanox Among Semiconductors' Biggest Movers on September 12, 2012

September 12, 2012 | Filed Under » ,
Tickers in this Article » AIXG, FSLR, PANL, SPRD, ASMI, SLAB, MLNX
It's been a good morning for the market. The Nasdaq has increased 0.1%; the S&P 500 has climbed 0.3%; and the Dow is trading up 0.4%.

Outperforming the market overall, the Semiconductors sector (XLK) is up 0.4% and its biggest movers so far today are:
CompanyMarket CapPercentage Change
AIXTRON SE (Nasdaq:AIXG)$1.51 billion+3%
First Solar (Nasdaq:FSLR)$1.9 billion+2.7%
Universal (Nasdaq:PANL)$1.96 billion+2.4%
Spreadtrum Communications, Inc (Nasdaq:SPRD)$957.3 million+2.3%
ASM International (Nasdaq:ASMI)$1.98 billion+2%
Silicon (Nasdaq:SLAB)$1.59 billion+1.9%
Mellanox (Nasdaq:MLNX)$4.07 billion-1.8%
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AIXTRON SE (Nasdaq:AIXG) is up 3% to reach a current price of $15.43 per share. So far today, the company's volume is 28,956 shares. Volume is an important indicator in technical analysis as it is used to measure the worth of a market move. If the markets have made a strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the move. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. Dividend yield measures the income that a stock will generate for an investor. AIXG has a low dividend yield of 1.4%. This could indicate that that the stock is overpriced or that future dividends might be higher. A higher dividend yield may indicate a risk of a fall in the price of the security, or a cut in the level of dividend payments, either of which would have the effect of dropping future returns. SEE: Due Diligence On Dividends





First Solar (Nasdaq:FSLR) has increased to a share price of $22.38, a 2.7% rise. So far today, the company's volume is 3.5 million shares, 0.3 times the current three-month average. Volume is used to evaluate how meaningful the price movement of a stock 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. In a nutshell, the price/sales ratio shows how much Wall Street values every dollar of the company's sales. FSLR's P/S ratio of 0.42 is fairly low. Low P/S ratios are more attractive than high ratios because this indicates that an investor is paying less for each dollar of sales. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.



Rising 2.4%, Universal (Nasdaq:PANL) is currently trading at $43.29 per share. So far this morning, 173,893 shares have changed hands. This is 0.3 times the average daily volume. Volume is an important indicator because it indicates how significant a price shift is. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The debt ratio shows the proportion of assets that a company is financing through debt. The debt ratio for PANL is a low 8.6%. A low debt ratio means the company has more available cash flow. However, one thing to note with this ratio: it isn't a pure measure of a company's debt (or indebtedness), as it also includes operational liabilities, such as accounts payable and taxes payable.



Spreadtrum Communications, Inc (Nasdaq:SPRD) is currently trading at $20.84 per share, a 2.3% increase. So far today, the company's volume is 498,536 shares, which is likely to result in less activity than yesterday's volume of 1.7 million shares. In technical analysis, trading volume is used to determine the strength of a market indicator. 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. Price/earnings ratios (P/E ratios) provide a measure of the relative value of a stock. SPRD's P/E ratio of 5.0 is under the industry average of 14.65. A low P/E ratio may indicate that the market expects relatively slower earnings growth. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: How To Use The P/E Ratio And PEG To Tell The Future Of A Stock





ASM International (Nasdaq:ASMI) is at $36.83 per share after an increase of 2%. So far today, 4,031 shares have changed hands. High volume indicates a lot of investor interest while low volume indicates the opposite. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. 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. ASMI has a low capitalization ratio of 18.6%. A low capitalization ratio can signify a failure to leverage equity into investment, missing valuable opportunities for growth and expansion. This ratio is considered to be one of the more meaningful of the "debt" ratios - it delivers the key insight into the use of leverage by a company.



After rising 1.9%, Silicon (Nasdaq:SLAB) is currently trading at a share price of $38.75. The company's volume is currently 61,155 shares for the day, 0.3 times the average volume over the last three months. The trading volume for a stock indicates the level of investor interest. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. 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. SLAB's debt-equity ratio of 2% is on the low end. This shows that the company's assets are financed primarily through equity. 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.



Falling 1.8%, Mellanox (Nasdaq:MLNX) is currently at a share price of $100.61. So far today, the company's volume is 806,905 shares. This is consistent with its current daily average. 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. 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. The price/earnings to growth (PEG) ratio divides a company's P/E ratio by its growth rate of earnings-per-share. MLNX has a PEG ratio of 3.2. 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.



The Bottom Line The nature of the market is such that stocks will have good days and bad days. It is important to weigh current activity against historical performance when making any investment decisions. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.

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