Stock of the day.
APPLIED MATERIALS, Inc. (AMAT)
‘AMAT’ is a global leader in Nano-Manufacturing Technology and solutions with a broad portfolios of innovation equipments. Also the company provide equipments, services and software products for the fabrication of semiconductors chips, flat panels, solar photovoltaic cells and flexible electronics and efficient glass panels.
Worldwide spending on semiconductors fabrication equipments is expected to rise sharply during the year 2010, fuelled by a rebounding chip market according to the industry group. According to GARTNER Inc, Chip spending will rise over 77% this year vs. last year, to as much as 30B Dollars.
‘AMAT’ is going to be one of the beneficiary of this trend. On March 8, 2010 the company increased it’s dividend 17% to a yield of 2.27%, and a buyback of $2B of it’s own stock.
When a company buy it’s own stock it is believed that the stock is under value at current market prices, also when a company increase it’s dividend pay out it show a better profit in the near future.
According to my opinion ’AMAT’ is a strong buy with a target price of $20 a share by the end of the year.