Long Position on KLIC @ $17.45 on 1/25/2017 (Momentum)

Kulicke and Soffa Industries, Inc. (KLIC) designs, manufactures, and sells capital equipment and expendable tools to assemble semiconductor devices.

It operates in two segments, Equipment and Expendable Tools.

The Equipment segment manufactures and sells a line of ball bonders to connect very fine wires made of gold, silver alloy, or copper between the bond pads of the semiconductor devices or dies, and the leads on its package; wafer level bonders, which mechanically applies bumps to dies for some variants of the flip chip assembly process; and wedge bonders to connect semiconductor chips for the power packages, power hybrids, and automotive modules. This segment also provides advanced packaging with adaptive machine analytics chip-to-substrate bonders for flip chip and thermo-compression bonding applications; and electronic assembly solutions, as well as spare parts, equipment repair, maintenance and servicing, equipment upgrading, and training services.

The Expendable Tools segment offers various expendable tools for a range of semiconductor packaging applications. This segment’s products include capillaries for use in ball bonders, as well as gold wire bonding; bonding wedges for use in heavy wire wedge bonders; dicing blades that are used for cutting silicon wafers into individual semiconductor dies.

The company serves semiconductor device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers, and automotive electronics suppliers primarily in the United States and the Asia/Pacific region.

Shares are on the cusp of breaking out of its bullish "cup and handle." The firm reports its earnings on February 2nd. Higher share prices are expected.

52-Weeks Trading Range: $9.80 - $17.38

Entry Point: $17.45

Stop Loss: $16.30

Target Price: $19.40

Updates

2/2/2017 9:46:41 AM

KLIC closed at $19.41

Position closed on 2/2/2017 at price of $19.41 with a 11.23% gain in 8 days.

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