Editor's Note

This company builds the equipment needed to manufacture semiconductors. Never a slow market because all companies use the same tools.



NEW BULLISH Plays

UCTT - Ultra Clean - Company Profile

Ultra Clean Holdings, Inc. designs, develops, prototypes, engineers, manufactures, and tests production tools, modules, and subsystems for the semiconductor capital equipment and equipment industry segments primarily in North America, Asia, and Europe. It offers precision robotic systems that are used when accurate controlled motion is required; gas delivery systems, which include one or more gas lines consisting of small diameter internally polished stainless steel tubing products, filters, mass flow controllers, regulators, pressure transducers and valves, component heaters, and an integrated electronic and/or pneumatic control system; and various industrial and automation production equipment products. The company also provides subsystems, such as wafer cleaning sub-systems; chemical delivery modules that deliver gases and reactive chemicals in a liquid or gaseous form from a centralized subsystem to the reaction chamber; frame assemblies, which are support structures fabricated from steel tubing or folded sheet metal; and top-plate assemblies. In addition, it offers liquid delivery systems; process modules, which are the subsystems of semiconductor manufacturing tools that process integrated circuits onto wafers; and other high level assemblies. The company primarily serves original equipment manufacturing customers in the semiconductor capital equipment, consumer, medical, energy, industrial, flat panel, and research industries. Company description from FinViz.com.

The company reported earnings of 47 cents and beat estimates for 42 cents. Revenue of $204.6 million beat estimates for $192.1 million. They guided for the current quarter to earnings in the range of 49-55 cents and revenue in the $210-$220 range. Those were above analyst estimates for 33 cents and $183.3 million.

Estimated earnings July 26th.

We played UCTT recently for a minor gain. The tech sell off has provided an ideal entry point at uptrend support and the lows from late May.

Buy UCTT shares, currently $22.27, initial stop loss $20.85.
No options recommended due to price, spreads and strike availability.


Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 at the market open.


NEW BEARISH Plays

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