October 11, 2006
Lam is one of my favorite stocks. I jokingly call LRCX "Kirk's ATM" to reflect how successful I have been with Lam both as a long term investment and trading its volatility for added return.
- Make sure you visit our LRCX Discussion Forum
I first started covering Lam Research here at Suite101 back in April 1998 in this post. I liked Lam because it was one of the leaders in etch technology, an area of semiconductor processing that I correctly believed would grow much faster than the overall market. I added LRCX to my newsletter Explore Portfolio in late 1998 at $3.33 per split adjusted share. Needless to say, at today's close of $48.12, Lam has been a great investment for me and my readers.
In early 1998, I had established a small position in the stock and, as is typical for how I invest, I was waiting for weakness to add significantly to my position. I made two more buys in 1998 at a split-adjusted price of $3.33 and $4.00. I still own some of those shares today in my personal, taxable account. Over the years, I've taken profits in my taxable account to pay some living expenses. I do most of my trading in my IRA where I can defer taxes until I take the money out in retirement. I will often trade five to ten percent of my shares around my core position several times per year for added return. Due to very large profits in the stock, I may have more tolerance for risk than a new investor so do your own due diligence before buying.
LRCX: LAM Research Corp
From the company website:
- "Founded in 1980, Lam Research Corporation is a major supplier of wafer fabrication equipment and services to the world's semiconductor industry. The Company's innovative etch technologies empower customers to build the world's highest-performing integrated circuits. Lam's etch systems shape the microscopic conductive and dielectric layers into circuits that define a chip's final use and function. The Company also offers a next-generation wafer cleaning solution, which employs proprietary technology and can be used throughout the semiconductor manufacturing process. Headquartered in Fremont, California, Lam maintains a network of facilities throughout the United States, Asia, and Europe to meet the complex and changing needs of its global customer base."
New Products:
- Clean
- Bevel-Clean
- Next-Generation Patterning
- Strip
- MEMs
- Productivity Enhancing Software Products
Revenue from all new products is expected to be approximately $100 million in CY2007.
More info on Lam Research:
- Company Web site
- Investor Relations
- 1 Year Chart
- 3 Year Chart
- 10 Year Chart with EPS
- Intraday Chart
- Discussion Forum
Kirk's LRCX Disclaimer: I own LRCX at the time I am writing this article in my personal portfolio. I purchased Lam back in 1998 at a split adjusted price of $3.33 and $4.00 so I have plenty of room to take some risk trading its volatility on house money. I also, at the time of this article, have LRCX in my newsletter Explore Portfolio. I make no promises to tell you if I sell it ahead of time in either portfolio. Buy at your own risk and consult with your own investment advisor before doing so.
Free Charts and Other Stuff
Since beating the market is hard for most to do, I recommend a "Core and Explore" approach to investing. Core means place 80 to 99% of your money into a CORE, buy-and-hold, no load, mutual fund portfolio and then EXPLORE with the remainder. To build your core portfolio, I suggest a diversified basket of index funds.
I welcome more questions and suggestions for future articles at Kirk's Market Thoughts.
DISCLAIMER: Answers & my words are general in nature, are not meant as specific investment advice, and do not necessarily represent the opinion of anyone but Kirk. Individuals should consult with their own advisors for specific investment advice.
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