Author Archives: Scalper1

Could iPhone 7 Production Ramp Mark True Turnaround In Apple Stock?

Loading the player… Apple ( AAPL ) rallied in the stock market today as reports signal the consumer tech giant’s iPhone production is on the rise. Taiwan’s Economic Daily said Apple told its iPhone 7 suppliers to produce 72 million to 78 million units this year, many more than the 65 million units Wall Street has projected. That production target is also the highest in about two years. The iPhone 7 is due out in September and could give Apple the boost it needs after the company reported its first-ever quarterly decline in iPhone sales last month. Shares closed up 1.3% in below-average volume, hitting their highest level in nearly a month. But the stock still has a lot of recovering to do after gapping down on its latest quarterly report, as it’s down about 27% from its 52-week high. Chip Suppliers Get A Boost Meanwhile, Apple chip suppliers Taiwan Semiconductor ( TSM ), Broadcom ( AVGO ), Qorvo ( QRVO ) and Skyworks Solutions ( SWKS ) are also getting a boost from the report. Taiwan Semiconductor rallied 1.5% in light turnover, but hit resistance at its 50-day line. Shares are trading 7% below their March high and a flat-base buy point of 26.72. Broadcom climbed 1% in below-average volume, but it’s also hitting resistance at the 50-day line. Broadcom’s stock is 7% below its April peak and a potential buy point. Qorvo rose 2% in big volume after having retaken its 50-day and 200-day moving averages in Friday’s session. The stock is nearing a cup-with-handle buy point of 52.05, but it’s trading 42% below its high reached last June. Skyworks added 1.9% in fast trade, but it’s still 41% below its June high.

Could Lam-KLA Marriage Face ‘Deal-Killing’ Objection By Intel, TSM?

Lam Research ( LRCX ) and KLA-Tencor ( KLAC ) could be forced to trim competitive segments to push through the $10.6 billion merger that threatens to swallow rival Applied Materials ( AMAT ), Semiconductors Advisers President Robert Maire said Monday. And unlike Applied Materials’ failed attempt to acquire Tokyo Electron, Lam only sees $250 million in initial savings and therefore has less wiggle room to negotiate potential antitrust remedies, Maire wrote in a research report. “Both Lam and KLA are already superbly run companies without a lot of cleaning up to be done,” he wrote. “This suggests that there is not a lot to be gained in efficiency by the combo as they are already quite profitable as separate entities.” The synergies, however, have likely prompted antitrust concerns. Last week, the U.S. Department of Justice sent a “ second request ,” asking for more information into Lam’s plan to buy KLA. Now, the duo could be forced to sign a “plea bargain,” Maire said. KLA products measure competitors’ dep and etch tools, leading to a “fox guarding the hen house” paradigm where a Lam-owned subsidiary would be charged with rating rivals’ tools. Under the DOJ consent decree, KLA could be forced to divest those businesses or license its technology. “The range (of potential remedies) is quite broad, from almost zero cost to deal-killing cost and everything in between,” Maire said. Applied Materials and Tokyo Electron eventually called off their merger in the face of stringent regulatory concerns. After the DOJ rules, the Lam-KLA deal still faces potential fights from regulators in Japan, China, Korea and the Netherlands, where a number of rivals operate. And major chip manufacturers  Intel ( INTC ) and Taiwan Semiconductor Manufacturing ( TSM ) also will likely have objections, Maire says. “We would imagine that they are concerned about their suppliers gaining too much leverage against them and holding too much consolidated power,” he wrote. “Both are probably happier with the status quo.” On the stock market today , Lam and KLA stocks were each rose a fraction, trailing a 1% rise in Applied Materials stock. No. 1 chip-gear maker ASML ( ASML ) stock also rose a fraction Monday.

Netflix Shows Signs Of Life While Facebook, Amazon Breach Key Levels

Loading the player… The “FANG” stocks are showing some compelling chart action today, with Netflix ( NFLX ) seeing some signs of life and Facebook ( FB ) dropping back below buy range. Meanwhile, Amazon ( AMZN ) is breaching a short-term support level and Google owner Alphabet ( GOOGL ) is hitting resistance at a long-term measure. Netflix Netflix rose 2.6% in average volume to hit its highest level in a month. The stock is now nearing its 50-day line, an area it breached after issuing disappointing quarterly results. If Netflix can retake that level it would be bullish. Shares are 28% below their all-time high reached in December. Facebook Facebook once again fell back below buy range from a cup-with-handle base it initially cleared on the heels of its view-topping quarterly earnings report about a month ago, losing 1.2%. Despite the negative action, volume was lighter than average and the stock is only 4% below its all-time high. It’s also still holding above its 50-day line and sell territory. Amazon Amazon fell below its 10-day line, sliding 0.9%, after finding support there in the past four sessions. But the stock is just 3% below its high and is extended 16% past a cup-with-handle base buy point it cleared ahead of the company’s estimate-beating earnings report. Alphabet Alphabet continued to hit resistance at its 200-day line for a third session, dropping 0.6%. Shares tried to break out of a cup-with-handle base ahead of its latest quarterly report, but breached their key moving averages in the wake of the results. Alphabet is now trading 11% below its high reached in February.