Hittite Microwave (HITT.O), the world’s 50th largest Semiconductor company by market capitalisation, traded between an intraweek low of US$51.05 and a four-week high of US$56.01. This suggests a trading opportunity between peaks and troughs. The share price dropped US$2.23 (or 4.2%) to US$51.35 in the week ending Friday September 02. Compared with the Dow Jones Industrials index which fell 44.3 points (or 0.4%) in the week, this represented a relative price change of -3.8%.
Support: the support price is hovering at the US$47.42 level. Volume traded at the fragile support price zone was 0.3 times average during the two occasions when the support price was breached. In the last one month the first low was at US$47.42 on Aug 09, the second decline halted at US$47.82 on Aug 10.
Resistance: the stock hit a new a four-week high of US$56.01 high on decreased volume index of 0.7 on Friday. Previous rallies have been met with resistance at US$56.47. However, selling pressure at that level has been weak; volume was 0.2 times average during the five occasions when the resistance price was breached in the last one month. In the last one month the highest was at US$56.47 on Aug 03, the second highest at US$56.36 on Aug 04. The third advance halted at US$56.01 on Aug 30, the 4th at US$55.90 on Aug 31 and the 5th at US$55.88 on Aug 29
Volume and turnover period: there were 636,525 shares worth US$34.4 million traded. The volume was 0.7 times average trading per week of 907,150 shares. The turnover rate in the 12 months to date was 145.1% (or a turnover period of 8 months).
% Discount to high: the last price is at a discount of 24.0% to the 12-month high of US$67.55.
% Premium to low: the last price is at a premium of 20.3% to the 12-month low of US$42.69.
Volume weighted price (VWP): the price is at a discount of 9.8% to the 3-month volume weighted average price of US$56.96, which may appeal as a value proposition.
Rises to Falls: In the last six months the number of falls outnumbered rises 16:11 or 1.45:1.
THIS WEEK’S PRICE PERFORMANCE RANK IN SECTORS
The stock is in 2 sectors.
The following index and sector fell setting the trend for its fall of 4.2% for the week (rank by percentage price change of stock for 1 week;12 months in sector/index in brackets):
Dow Jones Industrials index which was down 44.3 points or 0.4% to 11,240.3,
Semiconductor sector (rank 79;30 out of 95) which was down 32.0 points or 0.3% to 10,815.1
The stock’s fall went against the trend set by top 5000 Market (rank 4610;1461 out of 5925) which was up 158.1 points or 1.9% to 8,550.
The Semiconductor company sector is the 38th largest by market capitalisation out of world’s 97 sectors. It is made up of 95 publicly listed companies with a combined market capitalisation of US$522.6 billion. The main players in the sector include Hynix Semiconductor, Taiwan Semiconductor Manufacturing, Arm Holdings Plc and Tokyo Electron.
RELATIVE VALUATION INDICATORS [RVI] FUNDAMENTAL ANALYSIS
The stock meets the following value criterion set by Benjamin Graham:
-”An earnings-to-price yield of at least twice the triple-A bond”; the stock’s earning yield of 4.8% is 2.37 times the triple-A bond yield of 2.0%.
-”Current ratio of two or more”; current assets are 16.21 times current liabilities.
The stock has a score of 5 out of 9 set by Joseph Piotroski [pass mark >=5 ]:
Positive net income; Positive operating cashflow; Return on assets improvement [from 15.8% to 19.0%]; good quality of earnings [operating cashflow exceeds net income]; Improvement in asset turnover [growth in revenue of 49.86% exceeded growth in assets of 38.54%].
Other Bullish Signals:
- Return on Equity of 20.5% versus sector average of 17.1% and market average of 10.3%.
- Return on Assets of 19.0% versus sector average of 11.0% and market average of 1.9%.
- Price/Earnings of 20.9 versus sector average of 13.0 and market average of 13.5. we estimate the shares are trading at a current year P/E of 17.9 and a forward year P/E of 15.3.
- Price/Sales of 6.59 versus sector average of 2.2 and market average of 0.7. we estimate the shares are trading at a current year Price/Sales of 5.5 and a forward year Price/Sales of 4.7.
- The Price to Book of 4.3 higher than average of 2.6 for the Total Globalstock Market. we estimate the shares are trading at a current year Price to Book of 3.4 and a forward year Price to Book of 2.7.
RELATIVE VALUATION INDICATORS [RVI] TECHNICAL ANALYSIS
- The price plummeted 8.5% in the last month.
- This was on volume of 1.03 times average for month.
- Compared with the Dow Jones Industrials index which fell 0.4% for the week and 5.3% for the month, this represented a relative price decrease of -3.8% for the week and 3.2% for the month.
- In the world’s market of 4,779 stocks traded today, the stock has a 6-month relative strength of 40 which means it has underperformed 60.0% of the market.
- The price to 50-day EMAP ratio is 0.9, a bearish indicator. In the past 50 days this ratio has been under 0.9 just ten times suggesting a support level. The 50-day EMAP has decreased to US$55.734. a decrease is another bearish indicator.
Trailing five weeks: the stock fell six times (60% of the time) and rose four times (40% of the time). The volume was 1.1 times average trading of 1,995,729 shares. The value of US$1,000 invested five weeks ago is US$917 [vs US$927 for the Dow Jones Industrials index] for a capital loss of US$83.
Trailing thirteen weeks: the stock fell eleven times (58% of the time), rose six times (32% of the time), was unchanged once (5% of the time) and was untraded once (5% of the time). The volume was 1.03 times average trading of 3,447,168 shares. The value of US$1,000 invested thirteen weeks ago is US$853 [vs US$930 for the Dow Jones Industrials index] for a capital loss of US$147.
Trailing Two Years: the value of US$1,000 invested two years ago is US$1,486 [vs US$1,258 for the Dow Jones Industrials index] for a capital gain of US$486.
Quarterly Report; year-on-year comparisons with previous corresponding period:
In the quarter to March 31, 2011 total revenue was up 24.1% to US$67.2 million; net profit growth 25.2% to US$20.2 million.
Annual Report for the year ended December 31, 2010 (year-on-year comparisons with previous corresponding period)-
EPS of $US2.56.
Favourable changes: total revenue up 49.9% to $US244.3m; net profit growth 66.8% to $US77.0m; a track record of profits in 4 of the last 4 years; Net tangible assets per share up 36.1% to $US12.7; Retained earnings to total assets up 8.9% to 52.8%; total revenue to total assets up 8.2% to 0.6.
Unfavourable changes: although the Total Liabilities to Operating Cash Flow ratio of 0.4 compares favourably with the Joseph Piotroski benchmark of <4, it had deteriorated by 23.3% from the previous year.; total liabilities to total assets up 16.7% to 0.1; current ratio down 26.9% to 16.2; Working capital to total assets down 2.8% to 84.8%.
Major Common Size Ratios: total current assets to total assets down from 91.4% to 90.4%; cash to total assets down from 75.3% to 72.9%; current debtors to total assets up from 6.1% to 8.5%; fixed assets to total assets up from 6.8% to 7.3%; current inventory to total assets down from 6.7% to 5.7%; profit before tax to sales up from 43.2% to 48.8%; profit after tax to sales up from 28.3% to 31.5%; cost of goods sold to sales down from 27.8% to 25.6%; tax expenses to sales up from 14.9% to 17.3%; sales and marketing expenses to sales down from 9.2% to 7.9%.
OPEN INTEREST TREND AND INTERPRETATION
Same day trend: open interest rose 0.7% from 1,673 to 1,685. Combined with the price falling 3.2 this suggests the market is weak.
Trailing one week trend: Open interest crashed 21.8% from 2,156 a week ago while the stock plunged 8.0% from US$53.58 a week ago. Combined with the falling price this suggests the market is strengthening.
Open interest as % of issued capital: 168,500 shares, representing 0.5 of the issued capital.
[ranked 892 out of 1228 stocks in descending order]
Put:call ratio: open interest contracts on exchange traded options included 591 put contracts and 1,094 call contracts.
The put:call ratio was 1:1.9, down 1.1 for the day, up 43.6 in the past week and up 20.8 in the past month.
Access comprehensive Stock Research on buysellsignals.net/BuySellSignals/report/Globalstocks/Stock/PDF/Weekly/Globalstocks_pdf_30928.pdf
EPS growth: The implied future growth rate of earnings per share required to justify the current Price Earnings Multiple of 20.9 on trailing twelve months is 0.5%, based on a formula devised by Benjamin Graham. This is lower than the year-on-year growth rate in eps of 65.2%, suggesting the stock may be undervalued.
Based on 31,354,381 issued shares the market capitalisation is US$1.6 billion.
Hittite Microwave Corporation designs and develops integrated circuits (ICs), modules and subsystems for radio frequency (RF) microwave and millimeterwave applications. The Company offers a range of standard and custom ICs, modules and subsystems that perform a range of functions across the RF, microwave and millimeterwave frequency bands. As of December 31, 2008, the Company had approximately 730 standard products spanning 20 product lines. The products are used in a range of wired and wireless communications applications, such as cellular telephone base stations, microwave and millimeterwave radio systems, broadband wireless access systems, and direct broadcast satellite systems. They are also used in detection, measurement and imaging applications including military communication, targeting, guidance and electronic countermeasure systems, commercial, scientific and military spacecraft, automotive collision avoidance systems, medical imaging systems and industrial test equipment.
The chief financial officer is William W. Boecke and the chief executive officer and chairman is Stephen G. Daly.
REPORTED BUYING AND SELLING
May 11: Hittite Microwave insider buys
Hittite Microwave (HITT.O) insider Weigold Franklin bought 2,113 shares worth approximately US$130,012.9 on May 05, 2011. The last price was US$61.50.
May 11: Hittite Microwave insider buys
Hittite Microwave (HITT.O) insider Hess Rick D bought 2,113 shares worth approximately US$130,012.9 on May 05, 2011. The last price was US$61.50.
May 11: Hittite Microwave insider buys
Hittite Microwave (HITT.O) insider Markham Adrienne M bought 2,113 shares worth approximately US$130,012.9 on May 05, 2011. The last price was US$61.50.
May 11: Hittite Microwave insider buys
Hittite Microwave (HITT.O) insider Godshalk Ernest L Iii bought 2,113 shares worth approximately US$130,012.9 on May 05, 2011. The last price was US$61.50.
August 03: Hittite Microwave insider sells
Hittite Microwave (HITT.O) insider Cole Everett Iii sold 81 shares worth approximately US$4,508 on August 01, 2011. The selling price was USD56.59.
BUSINESS NEWS ROUND UP
The last 5 snippets were:
August 18: Hittite Microwave: Twelve Connectorized Module Product Lines, In Stock and Affordable!
Robust Modules are Ideal for Laboratory & Application Specific Test Applications Chelmsford, MA 08/18/2011 – Hittite Microwave Corporation, the world class supplier of complete MMIC based solutions for communication & military markets, offers an extensive line of hermetic connectorized modules which are ideal for high performance laboratory, industrial and military subsystem applications. Broad Selection and In Stock Availability Hittite offers twelve standard connectorized module product lines – more than any other manufacturer.
August 08: Hittite Microwave: Two New Power Amplifiers Deliver Output Power to 2 Watts!
Chelmsford, MA 08/08/2011 – Hittite Microwave Corporation, the world class supplier of complete MMIC based solutions for communication & military markets, announces the release of two new Wideband GaAs pHEMT MMIC Distributed Power Amplifier die which are ideal for military EW, test & measurement equipment, and telecom applications as high as 32 GHz. The HMC994 is a 0.5 Watt GaAs pHEMT MMIC Amplifier which operates from DC to 32 GHz.
August 05: Hittite Microwave: Industry’s First Tunable Band Reject MMIC Filter!
Chelmsford, MA 08/05/2011 – Hittite Microwave Corporation, the world class supplier of complete MMIC based solutions for communication & military markets has introduced the industry’s first SMT packaged, MMIC Tunable Band Reject Filter which is ideal for absorbing unwanted signals in test and measurement equipment, signal processing equipment and electronic warfare (EW) subsystems up to 25 GHz. The HMC1000LP5E is a Tunable Band Reject Filter which exhibits only 3 dB of insertion loss within its passband of 100 MHz to 25 GHz.
July 27: Hittite Microwave: Powerful New Synthesized Signal Generator Sweeps from 10 MHz to 70 GHz!
Chelmsford, MA 07/27/2011 – Hittite Microwave Corporation, the world class supplier of complete MMIC based solutions for communication & military markets, has introduced a powerful new Synthesized Signal Generator which is ideal for engineering development and production test environments in microwave and millimeterwave radio, wireless HDMI, medical, SatCom and sensor equipment applications.
July 15: Hittite Microwave: New High Linearity Digital Attenuator for Infrastructure Applications!
Chelmsford, MA 07/15/2011 – Hittite Microwave Corporation, the world class supplier of complete MMIC based solutions for communication & military markets, has introduced a new 6-bit GaAs MMIC Digital Attenuator which is ideal for Intermediate Frequency (IF) applications in automotive, broadband, cellular/3G, LTE/4G, test & measurement equipment and military applications. The HMC624LFLP4E is a GaAs MMIC High Linearity 6-Bit Digital Attenuator which operates from 60 to 500 MHz, and can be programmed to provide from 0.5 to 31.5 dB of relative attenuation with 0.5 dB resolution.
Source: BuySellSignals. com
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