Yesterday, we posted a case study on Teradyne (NYSE : TER) whether someone knew ahead of the market.
Related post - Teradyne Inc. (NYSE : TER) - Someone Ahead of Market ?
Here is a local version.
Prior to GE14, the price moved higher but smart money activities showed divergence.
On 14 May 2018, the stock market opened after a long weekend due to 2 days public holiday declared by victorious coalition Pakatan Harapan, the stock price rallied with strong market activities (relatively high volume) but it failed to close near it's high of the day - instead around mid-range. Thereafter, the price moved within a narrow range over few days before the big plunge occur.
This action showed the smart money seems to know something ahead of the market.
Daily chart.
Note
: S-Trader indicators/tools are not part of Metastock software package.
It is our proprietary system/tools. If you have any further inquiries,
please feel free to Contact Us.
Source :
1) Metastock
On 24 April 2018, Teradyne reported revenue of $487 million for the first quarter of 2018 of which $373 million was in Semiconductor Test, $49 million in Industrial Automation, $43 million in System Test, and $23 million in Wireless Test. GAAP net profit for the first quarter was $87.0 million or $0.43 per share.
More details, Teradyne reports revenue and earnings growth in 1st Quarter 2018.
Some points to take note from the announcement.
1) Despite the strong 1st quarter results, the demand outlook for 2018 mobile devices test capacity declined sharply in the quarter and 2nd quarter guidance reflects that revised outlook.
2) Guidance for the 2nd quarter of 2018 is revenue of $490 million to $520 million, with GAAP net income of $0.39 to $0.46 per diluted share and non-GAAP net income of $0.45 to $0.52 per diluted share.
The following day, 25 April 2018, the share price opened with gap down with a lost of $4.46.
The most interesting part is not the announcement day. It was several days before 31 March, as shown with Marker A on the chart below. The side-way price action showed smart money knew ahead of the market.
Daily chart.
With the recent price, as shown by Marker B, few days before 2nd quarter ends.
What do you think the outcome of it ?
Note
: S-Trader indicators/tools are not part of Metastock software package.
It is our proprietary system/tools. If you have any further inquiries,
please feel free to Contact Us.
Source :
1) Metastock
2) www.teradyne.com
Weekly chart.
Are we going to see more selldown in near future on both companies ?
Check out the background on both companies .
Related post - Teradyne Inc. (NYSE : TER) - Tell-Tale Sign?
Note
: S-Trader indicators/tools are not part of Metastock software package.
It is our proprietary system/tools. If you have any further inquiries,
please feel free to Contact Us.
Source :
1) Metastock
Some time back in April this year, there was an article published by the Malaysian local newspaper, TheStar, titled "Growth in spending for test equipment to benefit Malaysia" in their website dated on 17 April.
According to the news, Malaysia stands to benefit from the growth in the spending for semiconductor equipment in 2017, which is expected to grow by 5% to 9% from US$3.6 billion in 2016.
This is because most of the top semiconductor test equipment players are located in Penang.
More news, Growth in spending for test equipment to benefit Malaysia
Two months after the article published, I decided to check out the price action on a particular company based in United States, that is, Teradyne Inc.
A brief background on Teradyne Inc.
"Teradyne is a leading supplier of automation equipment for test and
industrial applications. Teradyne Automated Test Equipment (ATE) is used
to test semiconductors, wireless products, data storage and complex
electronic systems, which serve consumer, communications, industrial and
government customers. Our Industrial Automation products include
Collaborative Robots used by global manufacturing and light industrial
customers to improve quality and increase manufacturing efficiency. In
2016, Teradyne had revenue of $1.75 billion and currently employs
approximately 4,300 people worldwide."
Daily chart of Teradyne.
Is it a tell-tale sign for those Penang-based test equipment and sensor manufacturing companies ?
Source :
1) Metastock
2) www.thestar.com.my
3) www.teradyne.com
