Buy Ichor Systems

By Linda McDonough • January 17, 2017

Buy Ichor Systems (NSDQ: ICHR)

Ichor is riding the wave of huge spending by chip companies on 3D NAND equipment. Ichor’s biggest customers, Lam Research and Applied Material, are estimated to sell roughly 20% more equipment in 2017 even after a record 2016. Demand for equipment using Ichor’s gas and liquid delivery systems is expected to grow 30%.

Revenue grew 40% in 2016 partly due to its purchase of plastic component supplier Ajax last April. Yet even without this purchase, revenue grew 23%. Low fixed expenses help Ichor remain profitable during cyclical slowdowns but the company is in the early innings of the ramp on spending for more sophisticated semiconductor equipment.

Ichor, which went public just last December, is already up 50% from its $9 IPO price. However,accelerating revenue and earnings growth should lift the stock another 40% to my $20 target.

Buy Ichor up to $16

Target $20

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HowieA

01/17/17 ‐ 9:39pm ET January 17, 2017 at 9:39pm ET

Linda – TD Ameritrade TOS won’t take this trade online. Is this a pink sheet listing? How can this be traded? Thanks, Howie

Linda McDonough

01/18/17 ‐ 6:29am ET January 18, 2017 at 6:29am ET

Howie,
That is very strange. It is a traditional Nasdaq stock. Perhaps because it is a new issue, there is a problem? I would call customer service and ask to trade the stock. I just checked and am able to buy it online via Fidelity so it should be available to you. Let me know how it works out.
Linda

HowieA

01/18/17 ‐ 8:48am ET January 18, 2017 at 8:48am ET

Thanks Linda – Had to have TOS trade desk enter order. Glitch in system. They will try and clean it up. However, for all on TOS, you need to contact the trade desk to place or modify order. I was told you can sell online.

DR083157

01/18/17 ‐ 8:47am ET January 18, 2017 at 8:47am ET

just placed an order on fidelity no issues…..

Melody Pfingsten

01/18/17 ‐ 3:27pm ET January 18, 2017 at 3:27pm ET

I called TD yesterday too. They said it was because of an issue with the stock itself not TD so interesting others can buy it with no problem.
Any thoughts on PI and is recent 15% sell off?

Linda McDonough

01/18/17 ‐ 8:06pm ET January 18, 2017 at 8:06pm ET

Melody-
Can you ask them specifically what the issue with the stock is? I don’t understand why one online broker can trade it but another not be able to. I would like to know so that I can be aware of it with any other stocks I encounter.

Impinj is a volatile stock as I mentioned in the recommendation. It traded up partly on the prospects of a possible partnership with Amazon. The stock traded well on January 10 when management presented at the Needham conference which can be viewed positively. The transcript from that meeting is unfortunately not available so I can only access management’s slide show, which remains positive.

However there is a negative article on Seeking Alpha that disputes the possibility that Amazon would partner with them based on technology patents and issues. I like the stock regardless of Amazon being a partner but do expect it to be a stock that jumps around. Unfortunately fourth quarter earnings do not come out until early March so I don’t expect we’ll hear more from them until then.

Linda

Melody Pfingsten

01/19/17 ‐ 1:13pm ET January 19, 2017 at 1:13pm ET

Linda,
They actually were not sure what the problem with trading ICHR on line was. They mused it might be low trading volume and went over the volumes with me. They implied it was the stock itself not TD which obviously it is TD.
I also have an acct with Schwab so i will try and see if it works there.
Melody

Linda McDonough

01/19/17 ‐ 1:23pm ET January 19, 2017 at 1:23pm ET

Hmmm….Thank you for the reply. I suspect it’s because it’s a new issue. The volume is quite low today (only 54,000 shares so far) but has averaged about 250,000 per day. Let me know if it works out for you.
Best,
Linda

Melody Pfingsten

01/19/17 ‐ 1:22pm ET January 19, 2017 at 1:22pm ET

Linda, sorry i should have just done it first. Anyway I have schwab one as well and it went through there with no issues so it must be a TD issue.

Guest User

06/05/17 ‐ 11:35am ET June 5, 2017 at 11:35am ET

Hey I still own ichr. Bought at 15. Is it time to sell?

Linda McDonough

06/05/17 ‐ 1:12pm ET June 5, 2017 at 1:12pm ET

You have great timing- I was just working on this name. I’m reading through some very bullish commentary on its customers, particularly Lam Research (LRCX), and may increase my target as I work through the numbers. I will let subscribers know right away if I do increase the target.
Best,
Linda

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