Taiwan Semiconductor Manufacturing Company Ltd  (TSM) Trade Now »     Rate TSM  -  Discuss TSM  -  Add to Watch List        

Former Wall Street Favorites Sink to Single Digits

I've chosen to invest due to a number of factors:

1. High return on equity (compared to industry)

2. Low debt to equity ratio

3. PEG < 1

4. Relatively low institutional ownership

5. Increasing growth, partially due to AMD going fab-lite

6. Extremely efficient management (high inventory turnover and revenue per empoyee)

This is a long-term buy with low downside and a relatively greater upside.

TSM was upgraded awhile back by ValueLine, and by others to "outperform." (the latter a dubious category, unless it means "outperform our other picks.")

The use of "chips" in automobiles, appliances, robots, etc is still growing exponentially - not to mention changes in Game Consoles. It is quite possible we will soon see the "games" themselves coming out with chips (possibly programable) and few producers have the capacities available to TSM. TSM is the biggest producer in the world.

On the technical side there is steady accumulation, sustained, even OBV, and a leveling of overbot-oversold