Lam Research Corporation (LRCX) started the month of June
trading at $83.39, and closed Friday June 12th at $81.46 representing
a 2.31% decrease for the month of June. This decline can be contributed to a
decrease in demand for their products in recent weeks. Samsung, who at one
point was one of LRCX’s major buyers has decreased and postponed the amount of
semiconductors equipment product that they will buy from LRCX. As the entire semiconductor industry has begun
to slow, LRCX has already recovered from a low of nearly $70 per share in
recent months. On the bright side there are expected to be some changes in the
industry in the near future that could renew interest in LRCX, also they have
continue to show growth that is above that of the industry average. I believe that
we should continue to hold LRCX for a few reasons 1) if there is a rebound in
the semiconductor industry or a improvement on the current technology LRCX
could benefit 2) also with many takeovers in the industry LRCX could be a
potential target, and could fetch a premium on the stock 3) As long as LRCX
continue to outperform its industry and large industry competitors like Applied
Materials, LRCX should remain in our portfolio.
Jeff Sherman
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