UMS Holdings

[BlueKelah]

Fat finger trade or big buyer?

[Nick]

Won't read too much into it. Could easily fall back tomorrow. The stock will XD next week.

(Vested)

[ForeverAlone]

any news on why UMS is up from 50 cents to now 56 cents?

the yield still looks good

[Boon]

This was an old interview with Mike Splinter of AMAT with Reuters a few years back - he considered wages to be high in Singapore but Singapore is in the game and USA in not…………

- Wages are high in Singapore
- Singapore is in the game
- Business tax is high in USA
- Shipping cost out weights other costs in USA
- most of its customers are in Asia

http://insider.thomsonreuters.com/link.h...3&end=1020

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- I guess tax saving is another big factor, as shown by the following extract from an old analyst result briefing:

"Non-GAAP earnings per share were $0.36. GAAP earnings per share were $0.38 and included the benefit of an adjustment to our restructuring reserves and the R&D tax credit. Our tax rate for the quarter was 25.5% and included a two-point reduction to reflect the R&D tax credit adjustment. We expect our effective rate for 2011 will be in the range of 27% to 28%, about a five-point reduction from our rate in 2010. This improvement is primarily due to the implementation of our Singapore operations hub and Asia-based supply chain"

http://seekingalpha.com/article/254960-a...art=single

(Vested)

[Boon]

It looks like TEL’s supply chain is very different to that of AMAT – it would be interesting to see how the “two systems” would be sorted out if the merger ever get approved by the authorities.

- TEL’s manufacturing is all done in Japan
- “Our R&D is global, but sourcing is domestic”
- Keeping production onshore works for Tokyo Electron because the components needed to make its tools are made in Japan, and the country’s infrastructure can support its manufacturing.
- Tokyo Electron, likewise, uses components from overseas but puts its products through extensive testing before they are shipped. “If components fail, they are dropped,” Sekiguchi said of the tests, which extend to the “molecular level. In the semiconductor industry, we buy the product, not the location or the source.”

Question : Is Singapore more “in the game” than Japan?

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To Be Made Here, or Elsewhere — a Look inside Outsourcing Decisions
Jul 17, 2013

“……………..Tokyo Electron, which makes the chip sets used in Sony Play Stations and other devices, faces similar requirements for high reliability and quality but has a less open approach to its own supply chain, noted Akihisa Sekiguchi, the company’s vice president and general manager for corporate marketing. Tokyo Electron produces mainly for export, though only eight customers account for almost all its business.

No Single Solution

Although it is not that well-known to consumers, Tokyo Electron once was number one in the integrated circuit industry, back when Japan was the leading manufacturer of semiconductors. Now, it is at the top in Japan and number three in the world, with 12,000 employees and $5 billion to $7 billion in annual sales. The firm’s manufacturing is all done in Japan, though it ships 90% of its products overseas. “Our R&D is global, but sourcing is domestic,” Sekiguchi said. Keeping production onshore works for Tokyo Electron because the components needed to make its tools are made in Japan, and the country’s infrastructure can support its manufacturing.

Apart from trials related to years of “endaka,” or the high-valued yen, Tokyo Electron’s biggest challenge came with the March 2011 earthquake and tsunami, which forced its factory in Fukushima to close for about two months. The company’s workers pulled together to get production back up as soon as possible, though “it takes time to track down 4,000 or 5,000 suppliers,” Sekiguchi noted. Calamities like the March 2011 disasters drove home the need to mitigate risk through multi-sourcing. But it does involve costs. “It’s not an easy solution,” Sekiguchi said. “IP protection is an issue. Geographic location is an issue.”

Ultimately, there is no single solution that works in all cases. The question of IP protection is vital to supply chain management……………

Tokyo Electron, likewise, uses components from overseas but puts its products through extensive testing before they are shipped. “If components fail, they are dropped,” Sekiguchi said of the tests, which extend to the “molecular level. In the semiconductor industry, we buy the product, not the location or the source.”

http://knowledge.wharton.upenn.edu/artic...decisions/

(vested)

[Dividend Warrior]

There's a short article in TheEdge this week on UMS with focus on this AMAT-TEL merger. Nothing new that's not discussed here. Only point of possible interest is CEO will be going to AMAT US for meeting in coming weeks, possibly to look for new biz, as mentioned in another earlier Edge article...

Hopefully, the CEO can bring back some big contracts.

[itskenneth]

Intel beat earnings expectations for revenues and profits as overall revenues grew 5 percent in the third quarter, thanks to both healthy data center revenue and the launch of Haswell-based laptops and portables.

Positive news for the tech sector?

[Boon]

Still in "breather" mode ?
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North American Semiconductor Equipment Industry Posts September 2013 Book-to-Bill Ratio of 0.97

SAN JOSE, Calif. — October 21, 2013 — North America-based manufacturers of semiconductor equipment posted $975.3 million in orders worldwide in September 2013 (three-month average basis) and a book-to-bill ratio of 0.97, according to the September EMDS Book-to-Bill Report published today by SEMI. A book-to-bill of 0.97 means that $97 worth of orders were received for every $100 of product billed for the month.

The three-month average of worldwide bookings in September 2013 was $975.3 million. The bookings figure is 8.3 percent lower than the final August 2013 level of $1.06 billion, and is 6.8 percent higher than the September 2012 order level of $912.8 million.

The three-month average of worldwide billings in September 2013 was $1.01 billion. The billings figure is 7.1 percent lower than the final August 2013 level of $1.08 billion, and is 13.6 percent lower than the September 2012 billings level of $1.16 billion.

"The book-to-bill ratio reflects seasonal softening and near-term deferral in capital spending in some segments of the industry,” said Denny McGuirk, president and CEO of SEMI. "We expect that market demand for semiconductors will drive continued capacity investment in 2014."............................................................................

http://www.semi.org/en/node/47656?id=highlights

(Vested)

[BlueKelah]

looks like the chip market is going sideways for now, but given IBM recent poor results maybe the industry is time for another downcycle, cant be upcycle all the time.

IF looking at past data it also does show whenever the book to bill ratio dip below 1 it will dip for a quite a few more months before recovery.

So 1 -> .98 and then now .97. Could be signalling a downtrend.

Value wise this high dividend stock is still doing some nice work

[Boon]

UMS is expecting to announce its 3Q2013 result tomorrow, if I am not wrong. Due to seasonality of demand ("breather"), 3Q (and possibly 4Q ) results would be weaker compare to 1Q and 2Q2013 . Nonetheless, dividend of SGD 1 cent would be expected for 3Q.

In the mean time, SIA just released worldwide chips sales figure for September - was at record high and seventh straight month of sales increase.
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Global Semiconductor Industry Posts Highest-Ever Monthly and Quarterly Sales

Sales increase for seventh straight month globally in September; sales in Americas increase by 24.3 percent compared to last September

Published Monday, November 4, 2013 5:00 pm
by Dan Rosso

WASHINGTON, D.C.—Nov. 4, 2013—The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing and design, today announced that worldwide sales of semiconductors reached $80.92 billion during the third quarter of 2013, the industry’s highest-ever quarterly total and an increase of 8.4 percent over the second quarter total of $74.64 billion. Global sales for the month of September 2013 reached $26.97 billion, the highest monthly total ever and an increase of 8.7 percent compared to September 2012. Sales in the Americas increased by 24.3 percent compared to September 2012, while global sales this September were 3.3 percent higher than the previous month’s total of $26.10 billion. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average.

“The global semiconductor industry has built impressive momentum through the third quarter of the year and is well-positioned for a strong close to 2013, thanks largely to growing strength in the Americas,” said Brian Toohey, president and CEO, Semiconductor Industry Association. “The industry established new monthly and quarterly bests in September, and favorable trend lines indicate continued growth. Sales of memory products have increased sharply compared to last year and continue to be a major driver of industry growth, but we have seen encouraging growth across the board, including solid increases in demand for analog and logic products.”

September sales topped sales from the same month last year in the Americas (24.3 percent), Asia Pacific (9.9 percent), and Europe (6.4 percent), but decreased in Japan (-12.9 percent), in large part because of the devaluation of the Japanese yen. Sales in September were up across all regions compared to the previous month, with the Americas posting the largest increase (5.7 percent).

http://www.semiconductors.org/news/2013/...rly_sales/

(Vested)