Focus Stock of the Month
Once a month we will provide a free analysis of a company from our Amateur Investor Index Top 50 which we feel is a stock to watch.
Our selection for July is International Rectifier (IRF).
Fundamentals:
|
IRF |
2Q 99/98 | 3Q 99/98 | 4Q 99/98 | 1Q 00/99 |
|
% Increase in Quarterly Sales Growth |
+10% | +19% | +29% | +44% |
|
% Increase in Quarterly Earnings Growth |
+500% | +900% | +1050% | +850% |
| % Increase in Quarterly Net Profit Margins | -2.3% | 3.4% | 7.2% | 11.0% |
Earnings Outlook:
Estimates for the next two quarters and next two years:
3Q 00/99 |
4Q 00/99 | 2000/1999 | 2001/2000 |
| E .47/.06 | E .48/.10 | E 1.17/.12 | E 2.23/E 1.17 |
| +678% | +378% | +872% | +91% |
IRF designs, manufactures and markets power semiconductors which switch or condition electricity at relatively high voltage and current levels. The Company's HEXFET power Metal Oxide Semiconductor Field Effect Transistors (MOSFET) and insulated gate bipolar transistors (IGBT) products comprised approximately two-thirds of fiscal 1999 sales. The Company also supplies high-voltage ICs, high-performance diodes, high-power rectifiers and thyristors. Its products are used in major market sectors including industrial, automotive, computer/peripherals, office equipment, consumer electronics, lighting and communications.
Ratings as of 7/1/00 include:
EPS: 72 RS: 97 ACC/DIST: A, GROUP
STRENGTH: 98
Industry Group: Electric-Semiconductor Manufacturing
Shares
Outstanding: 61.4M, Float Shares 55.9M
Institutional Ownership: 79%
Insider Ownership: 9%.
Average Daily Volume: 1.1M shares.
Next Earnings Report: 7/28
IRF has formed a Cup and Handle pattern over the past few months and now needs to break out of the developing Handle on increasing volume. IRF has seen accelerating sales and earnings growth the past three quarters along with rising profit margins as well. IRF is still forecast to have tremendous growth in 2000 and also in 2001. This will be an interesting company to watch in the months ahead if the markets start to rally again.
***The Focus Stock of the Month is our opinion of a company to watch in the future. This doesn't mean it's a recommendation to buy the stock.***
