Why Kulicke and Soffa Is Ready to Rebound

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chip equipment maker Kulicke and Soffa Industries (NASDAQ: KLIC  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Kulicke and Soffa and see what CAPS investors are saying about the stock right now.

Kulicke and Soffa facts

Headquarters (founded)

Singapore (1951)

Market Cap

$807.1 million

Industry

Semiconductor equipment

Trailing-12-Month Revenue

$785.0 million

Management

CEO Bruno Guilmart (since 2010)

CFO Jonathan Chou (since 2010)

Return on Equity (average, past 3 years)

36.8%

Cash/Debt

$494.2 million / $0

Competitors

ASM Pacific Technology

BE Semiconductor Industries

Teradyne

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 351 members who have rated Kulicke and Soffa believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, personaltrader, tapped Kulicke and Soffa as a particularly attractive bargain opportunity:

The valuation is just comical. Market cap of $300M when you subtract out cash, no debt and P/FCF of 4 (closer to 1.5 when you subtract out cash), P/E of 5 (2 when you subtract out cash) and reasonable P/B. Very cyclical, but poised to weather any storm. Potential growth with increasing smartphone competition and LED market expansion (CFL's have mercury, LED's last 20 years, so market will shift).

Of course, despite its five-star rating, Kulicke might not be your top pick. The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2348311, ~/Articles/ArticleHandler.aspx, 4/16/2014 12:45:03 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement