February 23, 2006:
Verigy engages in the design, development, manufacture, and sale of semiconductor test systems and solutions used in the production of semiconductor devices in the United States, Singapore, and Japan. Headquarters are in Singapore but releases news from Cupertino, California an old Hewlett Packard building. Verigy spun off from Agilent on 6/13/06 at $15 per share. Agilent was a 1999 HP spin off.
Last month, when Verigy was $18 and change, I posed here that Verigy looked ready to rock
Last week I wrote to my subscribers of Verigy:
- "With Verigy's great valuation and expectations for the future look great, I expect we'll continue to see big gains in Verigy as others learn of its great value. If they simply meet expectations for 2008 of $1.82 a share and get a PE of 15, then we should see $27. Given the growth rate is 50%... it should see $50 just to have a PEG of 1.0.... It seems so obviously under valued to me I often wonder what I am missing. Of course, this is what I said when I bought CACS at 46¢ and 96¢ for the newsletter portfolio back in 2002 and 2003. Sometimes the market really misses these small companies."
Today, Verigy has rewarded our patience as it has jumped from $$18 to $24 overnight on a good earnings announcement.
Discuss Verigy in our Verigy Discussion Forum. Do you think VRGY will continue on to $50 or should we book our 50% in less than a year gains here around $24?
Kirk's VRGY Disclaimer: I own VRGY at the time I am writing this article in my personal and my newsletter Explore Portfolios. I make no promises to tell you here if I sell it ahead of time in either portfolio. (That is what my newsletter is for) Buy at your own risk and consult with your own investment advisor before doing so.
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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.
Kirk Lindstrom:
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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