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Sunday, January 11, 2009

SOX - Semiconductor Index Trading Channel & Weekly Valuation Numbers

Until the dashed green support line is broken, this is the trading channel for the SOX, also known as the Philadelphia Semiconductor Index.

Click stockcharts.com graph for full size image

The 18 companies in the SOX are Altera Corporation (ALTR) (charts), Applied Materials (AMAT) (charts), Advanced Micro Devices Inc. (AMD), Broadcom Corporation, (BRCM) Infineon Technologies AG (IFX), Intel Corporation (INTC) (charts), KLA-Tencor Corporation, (KLAC) Linear Technology Corporation (LLTC), Marvell Technology Group, (MRVL) Micron Technology, Inc. (MU), National Semiconductor Corporation (NSM), Novellus Systems, Inc. (NVLS), SanDisk Corporation (SNDK) , STMicroelectronics N.V. (STM), Teradyne, Inc. (TER), Taiwan Semiconductor Manufacturing Company, (TSM) Texas Instruments Incorporated (TXM) and Xilinx (XLNX).

This table shows their recent closing price and percent weighting in the SOX index.

Name
Ticker
Price
% of Index
Altera Corporation (charts)
ALTR 15.800000 7.8102
Applied Materials, Inc. (charts)
AMAT 10.370000 5.1261
Advanced Micro Devices, Inc. AMD 2.690000 1.3297
Broadcom Corporation BRCM 16.940000 8.3737
Infineon Technologies AG IFX 1.250000 0.6179
Intel Corporation (charts)
INTC 14.150000 6.9946
KLA-Tencor Corporation KLAC 22.050000 10.8997
Linear Technology Corporation LLTC 22.200000 10.9738
Marvell Technology Group
MRVL 6.860000 3.3910
Micron Technology, Inc. MU 3.290000 1.6263
National Semiconductor Corporation NSM 10.090000 4.9876
Novellus Systems, Inc. NVLS 13.770000 6.8067
SanDisk Corporation SNDK 12.300000 6.0801
STMicroelectronics N.V. STM 6.540000 3.2328
Teradyne, Inc. TER 5.240000 2.5902
Taiwan Semiconductor Manufacturing Company
TSM 7.490000 3.7024
Texas Instruments Incorporated TXN 14.960000 7.3950
Xilinx, Inc. XLNX 16.310000 8.0623

Here are the weekly valuation numbers from Donald Wennerstrom for the SOX.

PEG is the Price to Earnings ratio (PE) divided by First Call's estimated long term growth rate. For example, Intel closed 1/9/09 at $14.15 and is expected to earn $0.71 per share so its PE ratio is $14.15/$0.71=19.93 (rounded to 20) . Divide 20 by an estimated 12% growth rate and it has a PEG of 1.62.

In my newsletter and with my personal money, I like to trade Lam Research (Ticker LRCX - more LRCX charts) around a very low cost core position. Key attributes for LRCX are its greater volatility and better business model compared to most of the better known and more widely followed stocks in the SOX.

I'd love to see LRCX break-out....

Disclaimer: I currently own and trade ALTR, AMAT, INTC and LRCX in my personal portfolio and "Kirk Lindstrom's Investment Newsletter." I may buy or sell shares at any time, often at "Auto Buy" and "Auto Sell" levels set ahead of time in the newsletter. I will not be announcing decisions to buy or sell here ahead of time.

18 SOX Ticker symbols: ALTR, AMAT, AMD, BRCM, IFX, INTC, KLAC, LLTC, MRVL, MU, NSM, NVLS, SNDK, STM, TER, TSM, TXN, XLNX

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