Research Report ►(comments)

Advantest Corporation, together with its subsidiaries, manufacture and markets semiconductor and component test system products, and mechatronics-related products. Via its three divisions: (Semiconductor and Component Test System; Mechatronics System; and Services, Support, and Others) Advantest .provides test products for semiconductor manufacturers, foundries, and test houses in North America and Europe.

Investment Impacts (help)

Japan Country Analysis ► (edit / improve) Japan (JPY), the second largest economy in the world, has an industrial, export oriented economy that benefits from its relationship with the USA and proximity to China. Currency: Japan’s currency (the Yen) is overvalued according to investment flow potential, the purchase price parity, and the interest rate parity. Investor Survey: Japan’s economic environment is moderately favorable for long term economic growth due to high scores on economic freedom and government transparency, but low scores on the SWOT Analysis. Trade: Indonesia, China, Singapore, the EU, Korea, and the US are Japan’s top export partners, while the leading industry is industrial manufacturing. Commodity: Japan imports many products because of its lack of arable land and energy resources. SWOT Analysis: The leading Japanese strength is their education system, while the main weakness is a declining birth rate. A major Japanese threat is the continuation of zombie companies. Trading Strategy: An overvalued currency, low investment flow potential and moderate business environment leads to a negative outlook for Japanese investments.

Technology Industry Analysis ► (edit / improve)

Description: The technology industry broadly includes companies whose primary function is to create innovative products and processes. Information technology deals with the management and processing of information. Read More.

Profit Analysis: The best way to profit from technology stock investments is to find the most undervalued investments (Wall Street and Main Street buy ratings) during economic recessions. Those investments should be undervalued (see Wall Street on left side), and have high Main Street Common Sense investment ratings (see Main Street on right side). When an economic recovery occurs, technology stocks tend to outperform the general stock market, because consumers and businesses quickly resume spending on items they wanted, but resisted buying during tougher economic times. Eventually those investments become overvalued, because profits and stock prices increase past their fair values. During the last stages of an economic business cycle, just before a recession, it is best to sell technology stocks, because they are likely to decrease in price quickly. Technology makes the lives of consumers and businesses easier, but during tough economic times, people tend to work harder, which offsets the benefits of technology temporarily. Expensive (overvalued) stocks with low Main Street Common Sense ratings should be sold at any time to invest in better stocks. Two buys ratings are the best and two sell ratings are the worst possible stock investments.

Trading Strategy: During economic recessions, consumers and businesses tend to cut back on technology expenses to save money during tough economic times. Less spending decreases business revenue and eventually decreases stock prices. During economic recoveries, consumers have more income and business investment needs, so spending quickly increases. Higher spending increases business revenue and eventually increases stock prices. During a longer economic expansion, discretionary income and business demand increases, but at a slower pace than during the recovery stage.

¹ Investment potential (margin of safety) is a weighted average of the discounted cash flow (DCF), the enterprise value (EV) market multiple, and the Warren Buffett investment methods.

² The weighted average cost of capital (WACC) for the industry is a broad representation of the WACC for each individual company. A sub-industry WACC offers both stability and accuracy for each individual company.

SWOT Analysis - Advantest ► Add Your Input Below

WACC Discount Rate Analysis - Advantest ► Experiment with ATE's Analysis ►

Discounted Cash Flow Analysis - Advantest ► Experiment with ATE's Analysis ►

Comparative Value Multiple Analysis - Advantest ► Experiment with ATE's Analysis ►

Warren Buffett Intrinsic Value Analysis - Advantest ► Experiment with ATE's Analysis ►

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