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Kirk Lindstrom
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Kirk Lindstrom has an engineering degree from the University of California, Berkeley. Following 20 years of research and development as a scientist and engineer at Hewlett Packard, Kirk turned his attention to investments where he edits "Kirk Lindstrom's Investment Letter," that... More
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  • Lam Research Has Very Low PEG

    On Jan 29, Lam announced GREAT Q2 2014 results that were a third consecutive quarter of record revenue with 10% revenue growth over Q1. Their guidance last quarter was for flat to slightly lower revenue so this was a huge beat. Earnings per share grew $0.37 or 74% over Q1-04.

    1/29/14 Q2-2014

    Q2 2014

    Q2 2013

    Change

    Total revenue (millions)

    $1,116

    $861

    $255.18

    29.6%

    Net income (millions)

    $148.99

    $6.41

    $142.58

    2225%

    Diluted EPS

    $0.87

    $0.04

    $0.83

    2075%

    Shares used (millions)

    171.8

    171.4

    $0.39

    0.2%

    The best news is Lam expects growth to continue with Q3 revenue growing 9% to $1,215M and Q3 EPS growing another 32% to $1.15 plus or minus $0.05. My biggest worry is Lam often looks dirt cheap on a PEG and PE basis before it crashes so I take profits. Remember, "Bulls and bears make money while pigs get slaughtered."

    (click to enlarge)

    LRCX Valuation from my last newsletter update

    Lam does not pay a dividend. The way to "extract value" over time is to trade the volatility to take cash out and pay our own dividends or buy when very cheap and ride out the volatility.

    Disclosure: I am long LRCX.

    Tags: LRCX
    Feb 18 2:13 PM | Link | Comment!
  • NanoViricides Soaring On Great News

    One of my "Explore Portfolio" speculation stocks, NanoViricides (Ticker and my charts at NNVC), is soaring on a recent batch of great news.

    (click to enlarge)NNVC Chart

    You can read a summary of the news here. Excerpts:

    • NanoViricides Signs a Non-Disclosure Agreement with the Lovelace Respiratory Research Institute for IND-enabling Efficacy Studies on FluCide® and for Testing its Novel Drug Candidates against the Highly Lethal MERS Human Coronavirus
    • The Company has already shown that the injectable and oral FluCide drug candidates are substantially more effective than oseltamivir (Tamiflu®) in controlling influenza A virus infections in a highly lethal animal model using two unrelated subtypes of influenza A, namely H1N1 and H3N2.
    • NanoViricides Receives Notification that Clinical Coordinators Have Been Appointed by The European Medicine Agency to Review the Company's Upcoming DengueCide Orphan Drug Designation Application
    • There is currently neither an effective drug treatment nor a vaccine for dengue virus infection.

    (click to enlarge)Excerpts from my Newsletter about NanoViricides, Inc.

    and

    (click to enlarge)

    Disclosure: I am long NNVC.

    Aug 07 1:36 PM | Link | Comment!
  • ECRI's Lakshman Achuthan Defends Their Recession Call

    I posted a video of Lakshman Achuthan, co-founder of the Economic Cycle Research Institute, talking with Tom Keene and Sara Eisen on Bloomberg Television's "Surveillance" along with a summary of ECRI's main points at

    If you examine yesterday's GDP by quarter data, Q1-2011 was revised DOWN 1.4% to negative 1.3%.

    A similar negative 1.4% revision to Q4-2012 and Q1-2013 GDP (perhaps in a year from now) would show a recession for those periods.

    I have been correct to recommend SPY here on Seeking Alpha for the past few years despite ECRI's fears of a recession. In my February 2011 article "How to Play Expected Inflation from the TIPS Spread," I wrote I was long SPY, as one way to benefit from expected inflation. "I also believe it is a good time to own equities including SPY, the exchange traded fund for the S&P 500, for both inflation protection and income."

    For more, see "SPY Makes New Record High While ECRI's WLI At 119-Week High"

    Disclosure: I am long SPY.

    Tags: SPY, Economy, ECRI
    Aug 01 10:18 AM | Link | 1 Comment
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