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.
So what: Some of the $9 billion Intel plans to spend in 2011 should find its way into Brooks Automation's pockets, and investors are bidding the stock up as a result. The effect of the move is spreading across the semiconductor equipment industry, with Nanometrics and Cymer among other stocks moving higher.
Now what: With a price-to-earnings ratio below 13, Brooks looks like an even better value if Intel's spending helps it increase sales. This is nothing but bullish news for Brooks, and I think the stock should move higher as sales begin to pick up. Buying on a day the stock popped isn't really my style, but if shares pull back next week, investors could consider that a buying opportunity.
Interested in more info on Brooks Automation? Add it to your watchlist.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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