בס״ד

FCX Delivers 62%… and KLA Has a Chip on its (Right) Shoulder (KLAC, FCX)

Posted on May 9, 2022

Today’s intelligence arrives amid a spate of Mohammedan terror in the State of Israel.  Twenty are dead after a month-long bloodfest by the Jew-haters we permit to dwell amongst us.

May their blood be avenged ten-fold.

And more: may we live to see the day when the entire, holy Land of Israel is liberated and drenched in the blood of His enemies.

And now we close a trade.

It’s our FCX initiative, whose details can be found HERE.

In brief, we’re holding a credit of $3.01 and three short May 20th 44 CALLs.

And with the stock now at $37.88, we say it’s time to have done.

Buy back the 44 CALLs for $0.18 each, and chick-ka-ching, you’re up $0.95 NET on an outlay of only $1.52.

And that’s 62%.

No Complaints There.

And now we move into semiconductor territory.

KLA Corp. (NYSE:KLAC) makes a host of products and systems to aid in the manufacturing of microchips for the computer industry.  Along with “light-emitting diodes” and “defect inspection review systems”, they also offer something called “microelectromechanical system manufacturing products”.

Everyone knows that playing with chips these days is like playing poker.  The entire industry has succumbed to the Batflu counterfeit, with some having already fallen precipitously, while others await their beheadings.

Intriguingly, KLA falls into both camps.

But more on that in a moment.

First, a look at her fundamentals –

  • P/E is 16.08 – not bad, but going to contract.  Traditionally, the stock trades with a multiple of just 10-12x.
  • Dividend Yield is a nominal 1.27%.
  • Price to Book is a microelectromechanical 12.19, and
  • Despite the latest Q/Q Sales and Earnings coming in stronger by 26.90% and 32.10% respectively, KLAC can’t catch a break. The stock has been declining steadily since January of this year.

Have a look at the chart –

That said, the G-d of Israel decides all fates, so let us not drone hither and yon, and simply place our trust and faith in He who makest and determinest all outcomes.

May the Holy One’s will and ours be one!

With kind regards,

Hugh L. O’Haynew

 

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