AMAT

Applied Materials Inc

TMT


Presented:09/13/2018
Price:$38.89
Cap:$38.23B
Current Price:$191.02
Cap:$157.48B

Presented

Date09/13/2018
Price$38.89
Market Cap$38.23B
Ent Value$49.87B
P/E Ratio11.78x
Book Value$6.94
Div Yield2.06%
Shares O/S982.99M
Ave Daily Vol12,401,134
Short Int1.28%

Current

Price$191.02
Market Cap$157.48B
Applied Materials, Inc. engages in the provision of materials engineering solutions used to produce new chip and advanced display. It operates through the following segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment includes semiconductor capital equipment for deposition, etch, ion implantation, rapid thermal processing, chemical mechanical planarization, metrology and inspection, and wafer level packaging. The Applied Global Services segment provides solutions to optimize equipment, performance, and productivity. The Display and Adjacent Markets segment offers products for manufacturing liquid crystal displays, organic light-emitting diodes; coating systems and display technologies for television; personal computers, tablets, smart phones, and consumer-oriented devices. The company was founded on November 10, 1967 and is headquartered in Santa Clara, CA.

Publicly traded companies mentioned herein: Applied Materials Inc (AMAT), Micron Technology Inc (MU), Samsung Electronics Co Ltd (005930 KS), Universal Display Corp (OLED)

Highlights

The presenter has owned Applied Materials (AMAT) stock for four years. In Q4 2017, the position was halved due to how positive the consensus had become, and a shift in perception that the business was somehow no longer cyclical. While the stability of AMAT’s revenue stream has improved, and rising capital intensity should underpin long term growth, the stock stopped reacting positively to good news, and the overcapacity built in AMAT’s customers’ markets started to weigh on results. Management’s aggressive guidance also didn't help matters. However, given the recent pullback from ~$60 to the high $30s, the risk/ reward is once again favorable enough to begin adding-back to the position.

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Idea Discussion

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