October 26, 2010
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Entegris (Nasdaq: ENTG ) shares are soaring more than 13% above last night's closing price, bringing the stock back to prices not consistently seen since the summer of 2008.
So what: Riding a wave of upgraded semiconductor manufacturing lines across the chip industry, materials handler Entegris reported strong sales in the third quarter with more to come in the fourth.
Now what: We know that major customer Taiwan Semiconductor Manufacturing (NYSE: TSM ) is building out its manufacturing capacity, and that others are racing TSMC for the title of "biggest chip foundry anywhere." Entegris wins when these investments go high-tech and leading-edge. But don't go crazy buying process technology stocks. Fellow small-cap Ultra Clean Holdings (Nasdaq: UCTT ) , for example, is not seeing the same order trends as Entegris.
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