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: Shares of FormFactor (NASDAQ: FORM ) soared 18% today after the chip-testing equipment maker raised its current-quarter guidance.
So what: The stock has slumped in recent months on concerns over slowing demand, but upbeat revenue and margin guidance for the second quarter is quickly easing those concerns. Management cited higher demand across the SOC and DRAM segments for the positive view, giving analysts a much better feeling about FormFactor's growth trajectory.
Now what: Management now sees second-quarter gross margin of 34%-37% on revenue of $65 million-$69 million, well above its prior view of 31%-34% and $62 million-$66 million, respectively. "We continue to see strength in our business in both SOC and DRAM market segments," said Chairman and CEO Tom St. Dennis in a press release. "While we are encouraged by the strong momentum in our business, we remain focused on our longer term strategic initiatives that will drive growth beyond 2014." More important, with FormFactor still boasting a cash-rich balance sheet and forward P/E in the low teens, the downside remains limited enough to bet on those prospects.
Leaked: Apple's next smart device (warning, it may shock you)
Apple recent recruited a secret-development "dream team" to guarantee their newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are even claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of these type of devices will be sold per year. But one small company makes this gadget possible. And their stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!