Kulicke & Soffa Industries Inc. (NASDAQ:KLIC), a semiconductor equipment and materials company, currently generates leveraged-free-cash-flow of $89.43 million on a trailing 12 month basis. The last trading session valued the business (enterprise value) at $641.44 million, hence returning a significant free-cash-flow-yield (FCF/EV) of 13.9%.
Additional metrics in favor of KLIC include: a low PEG ratio of 0.39, a quick-ratio of 3.24 (strongly bullish), and a current-ratio of 3.82 (strongly bullish). KLIC currently trades at $11.41 per share, around 116% above its 52 week low.
With fundamentals in favor of KLIC, I look to time my entry into the stock. Here, a simple rule is adopted - to trade when the sector for the specific stock (in this case, the technology sector (NYSEARCA:XLK)) becomes oversold, and exhibits multiple technical buy-long signals.
A simple sector based technical analysis indicator, such as the "Technology Sector Trend-Indicator," freely available at tradepilot, is applied - where for example, if I am looking at selective stocks within this sector, I wait for the Trend-Indicator to become oversold, and to signal a fresh reversal/new green-bar long signal.
The timing method effectively reconciles both fundamentals and technical analysis into a disciplined stock selection and entry process - knowing which stocks to focus on and when to buy them.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in KLIC over the next 72 hours.