(Semiconductor, any of a class of crystalline solids intermediate in electrical conductivity between a conductor and an insulator. Semiconductors are employed in the manufacture of various kinds of electronic devices.)
Purchased 6000 shares of AEM in December 2019 @ $1.98
Reasons for my purchase:
- News on a recovery in the semiconductor industry from the rise of 5G and the known fact that companies involved in the semiconductor industry tend to see a rise in share prices before the actual rebound of the semiconductor cycle. (May have been a little late to this as AEM’s share price was already on the rise since late 2019)
- AEM has a solid financial health with 0 debt which is something that I really look out for due to the economic uncertainty these days.
- Intel, AEM’s main customer, is expected to perform better for Q42019. (And indeed has done so with revenue increasing 8% from a year earlier in the quarter)
Immediately after my purchase, AEM soared to $2.20. However, today it is trading around $1.90 due to the recent outbreak of the coronavirus which has dampened many investors’ confidence.
I am confident that AEM’s share price will recover either when the coronavirus is overcome or when the company reports its 4Q2019 earnings in the coming months.
With how the world is changing and the need for semiconductors increasing due to technological advancements, I will be interested to see if the semiconductor cycle slowly fade as demand starts climb exponentially. This will lead me to my decision on whether to keep AEM in my portfolio forever.
