Special Report: 10 Greatest “Savings Account Stocks”–#2 Taiwan Semiconductor
Today, September 20, I’m making Taiwan Semiconductor Manufacturing (TSM) my second pick in my Special Report: 10 Greatest “Savings Account Stocks.”
Today, September 20, I’m making Taiwan Semiconductor Manufacturing (TSM) my second pick in my Special Report: 10 Greatest “Savings Account Stocks.”
You know how a savings account works, right? You deposit money in a bank. The bank uses your deposit to make a loan. Out of its profits, the bank pays you interest. That interest payment is a pittance today. 0.5% if you’re very, very lucky. But the national average is just 0.06%. What I’m calling “savings account stocks” work the same way that a bank savings account does. (Share prices do fluctuate but in the long run I’d argue that these stocks are as safe as a bank savings account.) And they pay an annual return that’s 10X–or much, much more–higher–than the paltry 0.5% now offered by the highest yielding savings accounts. How do these stocks work and why are they so much better than bank savings accounts? You–investors–give the company capital by buying newly issued shares or company bonds. The company invests that cash in making widgets or apps or whatever. And the company returns the bulk of the profits from those investments to the owners of its stock in the form of dividends, stock buybacks, and the appreciation in share price that results from the growth of the company’s business over time. I’m posting the first of my 10 Greatest “Savings Account Stocks” today and my Special Report will name a total of 10 great “savings account stocks” in posts over the next week. Today’s Greatest Savings Account Stock Pick: Microsoft (MSFT). The average annual return on Microsoft shares has been 28% over the last 10 years. Beats that 0.5% on a savings account, no?
Taiwan Semiconductor Manufacturing (TSM), which makes chips for everybody and everything, plans to raise prices on its silicon by 10% to 20% in 2022, DigiTimes reported today. The company will raise prices on “mature-technology chips” manufactured on 16 nanometer or larger processes by 20%. Leading-edge chips with circuits smaller than 16 nanometers will see price increases of about 10%.
On Thursday, July 15, Taiwan Semiconductor Manufacturing (TSM), the world’s leading chip foundry, reported earnings of 93 cents a share for the second quarter, up 18% year over year. That was inline with analyst estimates. Sales rose 28%. The company raised its revenue guidance for the third quarter to a range of $14.6 billion to $14.9 billion. The midpoint of that range, $14.75 billion, was above the Wall Street consensus estimate of $14.57 billion. Sales in the third quarter of 2020 are $12.4 billion.Taiwan Semiconductor said that it now expects sales to grow more than 20% this year, an increase from the 20% target announced earlier in the year. For 2020-2025, the company raised its revenue forecast to a compound annual growth rate of 15% from a previous target of 10% to 15%. But the stock dropped 5.5% on July 15 and fell another 1.52% on Friday, July 16. Why?
I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. The thirtieth YouTube video “3 Picks for the Earnings Blowout” went up today.
Chip lead times, the gap between ordering a chip and taking delivery, increased to 17 weeks in April, indicating users are getting more desperate to secure supply, according to research by Susquehanna Financial Group. That is the longest wait since the firm began tracking the data in 2017.
Taiwan Semiconductor Manufacturing (TSM), the globes biggest independent chip foundry, said last week that it expects the chip shortage that has left automakers scrambling for silicon and cutting back production will be over by the end of the third quarter. Whether that’s good news or not depends on how much weight you give to this company’s projections.
Today, January 8, Taiwan Semiconductor Manufacturing (TSM), the worlds largest contract chipmaker, reported December sales that translate into record quarterly revenue with estimated sales in the quarter climbing to $12.9 billion (361.5 NT$). (The company reports its quarter on January 14.) The projections based on December revenue amount to a 25% increase in revenue in 2020 from 2019.