Businessweek Article - AMKR
by: Aartvark (44/M/Atlanta, GA) 12/18/1999 1:41 pm EST
Msg: 10587 of 10592
An article titled "Making the Most of a Good Situation" in Businessweek/Dec.27 highlighted 900 companies with projected earnings and long-term growth based on IBES survey of 4101 analysts. Amkor is one of them, pitted against the likes of Broadcom, Intel, Conexant, LSI Logic, JDS Uniphase, Natl Semi., Texas Instrument, Analog Devices. Clearly from the table or the outlook scoreboard, Amkor is one of the cheapest, if not the cheapest. Do not underestimate the earnings power of this company! Consider what the BW table shows as indicated below:
1999 Price % change - 150
Earnings growth '94-98 - 50.1%
ROE - 13.9
Price/BV - 582
P/E - 43 based on price of 27
Price/Sales - 1.8 (really cheap)
PE to Growth Rate - 1.5 (again really cheap!)
98 EPS - 0.70
99 EPS - 0.70 (could more than top)
00 EPS - 1.06 (not counting the Korean purchase)
Long term growth rate - 25%
I will again stress that EPS could grow faster which could lead to PE multiple expansion.
I recently had a discussion with a top ranking officer of the company. While no details were provided, the company is betting big on its microboard business which they expect could grow from zero to half a billion in revenues within 3 years. Output is on tight allocation, prices have firmed up due to tight capacity, gained more customers who are requesting long-term alliances, etc. I have not seen or heard any company that is so upbeat and confident. Enough said! |
