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It's been a while since I've written about Atmel (NASDAQ:ATML). I continue to consider it a great long(er)-term investment and it has made for a viable day trade over the past several months, given its relatively high beta and high volume.

Along with its sector, shares of Atmel have been beaten and bruised in recent months and have seen a 29% decline in value from their October 27 high of $11.72.

(Click to enlarge)

ATML Chart
ATML Chart

Considering the company's increasing relevance and growth potential in the mobile device space and its overall growth prospects, in general, I have considered any drops below the $10/share mark since August a tremendous buying opportunity. My most recent buy was on Friday at $8.31 (coincidentally Friday's closing price) and I just don't see the stock going much lower than it has in recent times.

Some may feel that the current forward P/E is a bit high, the price to book is low, and the most recent quarterly year-over-year growth was less than impressive and much of the blame for the stock (and its peers relative under-performance) has been the slowed economy and decreased manufacturer and consumer demand.

I believe that Atmel is a growing company with hundreds of products that consistently puts out award winning and technologically groundbreaking goods and wares while providing support to the PC and mobile device industries as it grows and develops its current business relationships and builds new ones with regularity.

Key Data:

Data provided by Capital IQ, except where noted.

Market Cap (intraday)5:

3.84B

Enterprise Value (Nov 26, 2011)3:

3.36B

Trailing P/E (ttm, intraday):

7.78

Forward P/E (fye Dec 31, 2012)1:

12.59

PEG Ratio (5 yr expected)1:

0.37

Price/Sales (ttm):

2.08

Price/Book (mrq):

3.23

Enterprise Value/Revenue (ttm)3:

1.79

Enterprise Value/EBITDA (ttm)6:

6.81

Fiscal Year  

Fiscal Year Ends:

Dec 31

Most Recent Quarter (mrq):

Sep 30, 2011

Profitability  

Profit Margin (ttm):

26.91%

Operating Margin (ttm):

22.35%

Management Effectiveness  

Return on Assets (ttm):

16.02%

Return on Equity (ttm):

49.78%

Income Statement  

Revenue (ttm):

1.88B

Revenue Per Share (ttm):

4.11

Qtrly Revenue Growth (yoy):

7.90%

Gross Profit (ttm):

728.18M

EBITDA (ttm)6:

493.86M

Net Income Avl to Common (ttm):

505.22M

Diluted EPS (ttm):

1.07

Qtrly Earnings Growth (yoy):

-46.90%

Balance Sheet  

Total Cash (mrq):

482.63M

Total Cash Per Share (mrq):

1.04

Total Debt (mrq):

0.00

Total Debt/Equity (mrq):

N/A

Current Ratio (mrq):

3.06

Book Value Per Share (mrq):

2.62

Cash Flow Statement  

Operating Cash Flow (ttm):

262.36M

Levered Free Cash Flow (ttm):

69.43M

Stock Price History  

Beta:

1.41

52-Week Change3:

-22.98%

S&P500 52-Week Change3:

-2.45%

52-Week High (Feb 9, 2011)3:

16.80

52-Week Low (Oct 4, 2011)3:

7.36

50-Day Moving Average3:

9.95

200-Day Moving Average3:

11.30

Share Statistics  

Avg Vol (3 month)3:

8,918,760

Avg Vol (10 day)3:

9,249,600

Shares Outstanding5:

462.60M

Float:

445.04M

% Held by Insiders1:

2.54%

% Held by Institutions1:

79.80%

Shares Short (as of Oct 31, 2011)3:

14.62M

Short Ratio (as of Oct 31, 2011)3:

1.80

Shares Short (prior month)3:

12.66M

Abbreviation Guide: K = Thousands; M = Millions; B = Billions
mrq = Most Recent Quarter (as of Sep 30, 2011)
ttm = Trailing Twelve Months (as of Sep 30, 2011)
yoy = Year Over Year (as of Sep 30, 2011)
lfy = Last Fiscal Year (as of Dec 31, 2010)
fye = Fiscal Year Ending
1 Data provided by Thomson Reuters
2 Data provided by EDGAR Online
3 Data derived from multiple sources or calculated by Yahoo! Finance
4 Data provided by Morningstar, Inc.
5 Shares outstanding is taken from the most recently filed quarterly or annual report and Market Cap is calculated using shares outstanding.
6 EBITDA is calculated by Capital IQ using methodology that may differ from that used by a company in its reporting

In the last two weeks alone, the company has launched a complete digital audio platform for consumer applications, cost effective LF-RFID IC for animal identification applications, an industry's first single-package microcontroller with LF-RFID reader and most importantly produced a capacitive touch controller with an industry best proximity sensing range.

The highest sell-side analyst's 12-month price target sits at $18.00 representing a 116% to current levels. With 462.6M shares out, Atmel's institutional ownership stands at 79% (a quarter over quarter decrease) and the most recent reported short interest is about 10.7M shares (a bi-weekly increase).

There is some speculation that the company will be releasing details of new leading-edge products and potential new business partnerships, to go along with contract extensions and reports of existing technology improvements the first half of next year.

Positive turns of events in the global economy will certainly have a direct affect on Atmel, as well as its peers, and one may ruminate that, given the stock's current relatively low valuation, the company may be considered at some point to be an attractive takeover target, if it isn't being contemplated already.

I believe the company will continue to bring innovation to the space and will be a great performer in a 2012 portfolio. My charts also indicate that the stock is currently technically oversold. Those who get in around the current share price or lower should be greatly rewarded, in time.

To review my past articles on Atmel (ATML) and Apple (NASDAQ:AAPL), click here and here.

Source: Atmel: Worth A Good Look Now For A 2012 And Beyond Portfolio