AMKR Is Cheap, Dead Cheap.
Among the stocks in the electronics and semiconductor contract/outsourcing/OEM business, AMKR has the lowest PE (14), lowest market cap/sales ratio (0.72), lowest price/book ratio (2.72), and lowest market cap/employee ratio ($0.1 million). In high tech industry, the most crucial and important asset of a company is its employees because of the difficulty and long period in training. When a company is buying another, the thumb of rule is that each employee is worth about 1-10 million dollars. Compared to TSM - the largest semiconductor foundry in Taiwan, each TMS employee is worth about 40 times more than AMKR employee ($4 m vs. $0.1m), is that interesting. If AMKR can come close to the average by any industrial standards, AMKR stock will be worth at least 30.
All the following stocks are in the electronics and semiconductors outsourcing and OEM business, while AMKR and TSM are for chip manufacturing and other are electronic circuit board:
STOCKS: PE, MktCap($b), Sales($b), Prc/sls, Prc/Book, Cap/Emplyee($m)
AMKR: 14.53, 1.27, 1.56, 0.72, 2.72, 10000, 0.1
JBL: 48.18, 2.66, 1.41, 1.96, 10.7, 5311, 0.5
SANM: 45.89, 3.17, 0.723, 4.58, 9.21, 4005, 0.8
SLR: 46.68, 9.94, 6.1, 1.74, 7.81, 20000, 0.5
TSM: 38.1, 23.5, 1.62, 14.52, 9.87, 5593, 4.2
Jan. 15, 1999 market close:
Stocks: Price, Change, Volumn, PE
AMKR: 10 3/4, +0/+0%, 1,058,600, 14.53
JBL: 73 7/8, +2 9/16/+3.59%, 328,300, 48.18
SANM: 75 9/16, +9 15/16/+15.14%, 1,415,900, 45.89
SLR: 87 ½, +3 15/16/+4.71%, 916,200, 46.68
TSM: 22 ½, +2 11/16/+13.56%, 2,689,100, 38.10 |
